Wells Fargo's unit to sell fund administration business

September 14, 2016 9:13 AM EDT

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

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(Reuters) - Wells Fargo & Co (NYSE: WFC) said it agreed to sell its fund administration business - Wells Fargo Global Fund Services (GFS) - to SS&C Technologies Holdings Inc (NASDAQ: 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 (NYSE: 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.

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

(Reporting by Richa Naidu in Bengaluru; Editing by Saumyadeb Chakrabarty)

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