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Wachovia Securities raided in auction rate probe | Reuters


KANSAS CITY, Missouri (Reuters) - Securities regulators from several U.S. states raided the St. Louis headquarters of Wachovia Securities on Thursday as 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 Corp (WB.N: Quote, Profile - Real estate agent of overseas property investment in Dubai, Research, Stock Buzz) affiliate, the former A.G. Edwards, concerned the $330 billion auction rate securities meltdown.
It said regulators were looking for information about Wachovia Securities' sales practices, internal evaluations of the auction rate securities market, and marketing strategies.
A spokeswoman for Wachovia was not immediately able to comment. The bank owns 62 percent of Wachovia Securities and Prudential Financial Inc (PRU.N: Quote, Profile - Real estate agent of overseas property investment in Dubai, Research, Stock Buzz) the remainder.
In addition to securities regulators from Missouri, regulators from Illinois, Massachusetts, New Jersey, Pennsylvania and other states were part of the team entering Wachovia Securities' headquarters, the officials said.
Missouri has also served subpoenas on more than a dozen Wachovia Securities agents and executives after receiving more than 70 complaints representing more than $40 million in frozen investments over the last four months.
The move on the headquarters comes three months after Wachovia Securities failed to fully comply with requests by the Missouri securities division for certain information, state officials said.







Oh My God!, Oh what will I do with my money now



Now is not the time to be in anything paper

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