Wachovia Securities raided!

[Ohio Blues]

So sayeth CNN:

Securities regulators from several U.S. states have raided the St. Louis headquarters of Wachovia Securities, officials say.

[Moon Man]

Regulators raid Wachovia Securities
Investigators look for documents revealing the company's sales practices.

CHARLOTTE, N.C. (AP) -- Securities regulators from several U.S. states on Thursday raided the St. Louis headquarters of Wachovia Securities, seeking documents and records on the company's sales practices.

The move is part of a broad investigation into questionable practices involving auction rate securities, Missouri officials said.

Missouri Secretary of State Robin Carnahan's office said the "special inspection" at the Wachovia division, the former A.G. Edwards, concerned the $330 billion auction-rate securities crisis. Wachovia Securities is part of the Charlotte-based bank, Wachovia Corp. (WB, Fortune 500)

"Hundreds of Missouri investors have called my office because of inability to access their money," Carnahan said in a statement. She added that she aims to take actions to "to make these investors whole."

The action, which also sought information on internal evaluations and marketing strategies, comes after more than 70 formal complaints were filed with the Missouri Securities Division over the last four months, representing more than $40 million of frozen investments.

In April, the Securities Division launched a full-scale investigation, requesting documents, e-mails, transcripts and other records from Wachovia Securities and other banks.

Wachovia Securities has not fully complied with these requests, prompting Thursday's onsite inspection, Missouri officials said.

However, a Wachovia spokeswoman said, "Most securities firms, including Wachovia, are responding to inquiries from regulators about the auction-rate securities industry."

"The discussions that are occurring today are a part of this ongoing process," spokeswoman Christy Phillips-Brown said.

Wachovia, the nation's fourth-largest bank, is the subject of arbitration claims and a class action lawsuit that was filed in New York in March.

Investigating auction-rate securities practices

In a regulatory filing in May, Wachovia said the Securities and Exchange Commission and other regulators are seeking information concerning the underwriting, sale and subsequent auctions of municipal auction-rate securities and auction-rate preferred securities. The interest rates on such securities are reset at regular auctions. Troubles have arisen as demand for some high-rate securities dries up as rates fall.

"Further review and inquiry is anticipated by the regulatory authorities and Wachovia will cooperate fully," the company said in the filing.

According to the filing, the bank and Wachovia Securities have also been named in a lawsuit filed in March in New York. The lawsuit seeks class action status for customers who purchased and continue to hold such securities based on alleged misrepresentations concerning the quality, risk and characteristics of the securities. The bank said it "intends to vigorously defend the civil litigation."

Wachovia shares rose 37 cents, or 3.5 percent, to $10.91 in afternoon trading. To top of page

Moon

[Jack Daniels]

So sayeth CNN:

Securities regulators from several U.S. states have raided the St. Louis headquarters of Wachovia Securities, officials say.

My freind's sister in law works there...

[Neutered Cat]

I should have gotton my money away from them at least two years ago and i still haven't.
I was involved in a Mediation against Wachovia in 06' because i had some mutual funds that were bought and sold from my account about 10 years ago without my permission from Bill Mead, who has since had his license revoked and in legal trouble. I got very little money from it, but Wachovia did not fight it and settled with a huge amount of people, mostly Busch retirees.
Need to get that money away from those scandalous pricks.

[Jack Daniels]

I should have gotton my money away from them at least two years ago and i still haven't.
I was involved in a Mediation against Wachovia in 06' because i had some mutual funds that were bought and sold from my account about 10 years ago without my permission from Bill Mead, who has since had his license revoked and in legal trouble. I got very little money from it, but Wachovia did not fight it and settled with a huge amount of people, mostly Busch retirees.
Need to get that money away from those scandalous pricks.

Hurry before the investigators issue an asset freeze...

[ppg shg]

Does this mean I don't have to pay my credit card back?

[triggercut1]

Stories here on the east coast, where Wachovia is the second-largest bank in the area suggested over the weekend that they were fighting to meet their cash reserves standards as required by the feds.

Ruh Roh.

[Celtic]

Well no Tom, your money isn't here, it's in Bill's house.

[Jack Daniels]

Does this mean I don't have to pay my credit card back?

Um, no, in fact they need it all right now...

[Prngr44]

I better hurry and close on my home loan!

[Neutered Cat]

Hurry before the investigators issue an asset freeze...

I met with my advisor about 5 months ago to move my mutual funds into something more aggressive, and i have to wait a year before i can touch it otherwise i will suffer a transfer or exchange fee. I don't touch the money that much anyways, its not alot or anything.

[Schwahalala]

I met with my advisor about 5 months ago to move my mutual funds into something more aggressive, and i have to wait a year before i can touch it otherwise i will suffer a transfer or exchange fee. I don't touch the money that much anyways, its not alot or anything.

Not really the year to be aggressive -

I'm down about 13%

[ort]

Yeah, my father has worked for Edwards/Wachovia for 25 years. Good times.

[Neutered Cat]

Not really the year to be aggressive -

I'm down about 13%

We shouldn't worry though as the market always corrects itself!!11

/

[Hepatitis Dispenser]

I bank with Wachovia. Just deposited my $1800 stimulus check/Bush pesos there. Should I be concerned? (I have well under the FDIC cutoff 100k in each of my accounts)