Wells Fargo Seeks Reinsurance Coverage from Lloyd’s for Securities Lending Lawsuits

NEW YORK — Wells Fargo Bank has sued a group of Lloyd’s of London Syndicates, seeking reinsurance coverage for its settlement of lawsuits arising from securities lending agreements executed by subsidiaries of its predecessor, Wachovia Corp.

In a Dec. 21 complaint filed in the U.S. District Court for the Southern District of New York, Wells Fargo says the Lloyd’s Syndicates breached a reinsurance policy issued to co-plaintiff Superior Guaranty Insurance Co.

Wachovia’s captive insurer, Superior Guaranty Insurance Co., formerly Beaumont Insurance Co., issued a one-year blended corporate directors and officers and bankers professional liability policy to Wachovia that was …