WASHINGTON - Norwest Bank Iowa, the Wells Fargo & Co. subsidiary bank said to have faced up to $600,000 in losses on unsecured Fed funds bought by the failed Hartford-Carlisle Savings Bank, did not in fact have any such exposure, according to new Federal Deposit Insurance Corp. disclosures.An internal FDIC memo, cited in a Feb. 7 American Banker story on the Iowa bank's failure, had indicated that Norwest Bank Iowa was "unlikely" to receive repayment of the $600,000.

Wells refused to comment when that story was written, but complained to the FDIC. In a Feb. 9 letter to Wells executive vice president Tom Wiklund, FDIC Assistant Director Stan Ivie said Hartford-Carlisle "did not hold any unsecured Fed funds purchased from Norwest Bank Iowa at the time of its failure."

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.