After warning of a second quarter loss of $2.6 billion to $2.8 billion due to mortgage and pre-existing legal problems and being thrown to the wolves, by the SEC, Wachovia outdid itself: getting raided in Missouri.
Securities regulators from several U.S. states on Thursday inspected 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.
There are many deadly sins of Wachovia each of which could bring the bank down, and if the pay option ARMs fallout doesn’t get them sooner or latter the legal back lash will. The bank has just gotten too accustom to doing what it wants with other peoples money.
“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.”
Inability to access their money, Wachovia is confused, do they think they’re a hedge fund? The action is a full scale investigation, but one is left to wonder why the bank is non non compliant.
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.
Wachovia Securities has not fully complied with these requests, prompting Thursday’s onsite inspection, Missouri officials said.
With all that’s gone wrong lately, if the bank has nothing to hide you’d think the bank would want to get this over with as soon as possible and cooperate. If the bank has nothing to hide.
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