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Exclusive - California to probe sale of Prudential insurance through Wells Fargo
December 12, 2016 / 9:09 PM / 10 months ago

Exclusive - California to probe sale of Prudential insurance through Wells Fargo

NEW YORK (Reuters) - The state of California has ordered an investigation into allegations Wells Fargo (WFC.N) retail bankers signed up customers for life insurance policies from Prudential Financial (PRU.N) without their permission.

A Wells Fargo branch is seen in the Chicago suburb of Evanston, Illinois, U.S. on February 10, 2015. REUTERS/Jim Young/File Photo

Dave Jones, California’s Insurance Commissioner, told Reuters on Monday that his office would hold an inquiry.

Earlier on Monday, Prudential Financial said it had suspended the distribution of a low-cost life insurance policy through Wells Fargo, pending a review of how the product was sold by the bank.

Wells Fargo’s sales practices have been under a spotlight since September when regulators ordered the bank to pay $190 million (150 million pounds) in fines and restitution to settle charges that its employees opened as many as 2 million deposit and credit card accounts without customers’ permission.

Reporting by Suzanne Barlyn; Editing by Carmel Crimmins and Meredith Mazzilli

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