Wachovia St. Louis headquarters raided

Securities regulators have raided the St. Louis headquarters of Wachovia to investigate the company’s actions  around their issuance of auction rate securities (h/t Don) .  The regulators are looking particularly hard at how the company valued and marketed the securities which have caused more than 70 complaints filed with the state from investors that have had assets frozen by the company during the mortgage meltdown.

From CNBC:

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.

“Hundreds of Missouri investors have called my office because of inability to access their money. They were told these investments were safe and easy to cash in, but now they cannot run their business, make medical payments, or pay school tuition,” Carnahan said in a written statement.

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