Wachovia Securities received subpoenas and inquiries from the Securities and Exchange Commission and state regulators requesting information on auction-rate securities, according to a filing by Wachovia Corp. (NYSE: WB) with the SEC.
Regulators have requested data concerning the underwriting, sale and subsequent auctions of municipal auction-rate securities and auction-rate preferred securities, the filing states.
Charlotte, N.C.-based Wachovia says it will cooperate fully in the probe.
According to the filing, Wachovia and Wachovia Securities have been named in a civil suit seeking class-action status for customers who bought and continue to hold auction-rate securities based on alleged misrepresentations about their quality, risk and other characteristics.
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