Prudential May Press Wells Fargo as Account Fallout Spreads

  • Insurer notified bank it may seek reimbursement, filing shows
  • In separate review, bank put manager on leave, ProPublica says
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Prudential Financial Inc., facing regulatory scrutiny and a lawsuit over a sales relationship with Wells Fargo & Co., said it may press its partner to cover costs after halting the offering -- another sign the bank has yet to contain the full fallout of its bogus-account scandal.

Prudential “has provided notice to Wells Fargo that it may seek indemnification,” the Newark, New Jersey-based insurer said in a Feb. 17 regulatory filing, referring to their agreement to sell MyTerm life coverage to Wells Fargo customers. Prudential didn’t quantify the sum that it might pursue.