Good for the city: Wells Farco ordered to pay St. Pete $10.2 million for bad investments

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The verdict is in.

Wachovia, now owned by Wells Fargo, was found liable in a US District Court for $10.2 million for bad investment advice.

The city said Wachovia didn’t tell city officials that Lehman Brothers, of which the city held $15 million in corporate bonds at the time of its bankruptcy, was downgraded on three separate occasions by three separate ratings agencies in the summer of 2008, reports Michael Van Sickler.

Wells Fargo disputed the allegation that Wachovia didn’t alert the city, but there’s no written documentation that it did.

Undoubtedly, Wells Fargo will appeal the decision.

Peter Schorsch is the President of Extensive Enterprises and is the publisher of some of Florida’s most influential new media websites, including,,, and Sunburn, the morning read of what’s hot in Florida politics. SaintPetersBlog has for three years running been ranked by the Washington Post as the best state-based blog in Florida. In addition to his publishing efforts, Peter is a political consultant to several of the state’s largest governmental affairs and public relations firms. Peter lives in St. Petersburg with his wife, Michelle, and their daughter, Ella.