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Wells Fargo's unit to sell fund administration business

Published 09/14/2016, 09:42 AM
© Reuters. Wells Fargo branch is seen in the Chicago suburb of Evanston Illinois
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(Reuters) - Wells Fargo & Co (N:WFC) said it agreed to sell its fund administration business - Wells Fargo Global Fund Services (GFS) - to SS&C Technologies Holdings Inc (O:SSNC).

The terms of the transaction were not disclosed, Wells Fargo said in a statement.

The fund administration business is part of Well Fargo's investment banking and capital markets business.

The announcement comes amid a gathering public storm over a fake account scandal at the bank that has led to $190 million in fines and the firing of 5,300 employees.

Well Fargo's shares have lost about 6 percent of their value since last week, when U.S. regulators unveiled the fines. As a result, the bank has ceded its position as the largest U.S. bank by market capitalization to rival JPMorgan Chase & Co (N:JPM).

Politicians are calling for an investigation, and Wells Fargo and regulators are expected to testify in the Senate next week.

Fund administrator SS&C Technologies said the deal would add 250 employees serving more than 130 fund relationships in United States, UK, Singapore and Hong Kong.

© Reuters. Wells Fargo branch is seen in the Chicago suburb of Evanston Illinois

The deal is expected to close in the fourth quarter of 2016.

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