Securities regulators from several U.S.states raided the St. Louis headquarters of Wachovia Securities on Thursdayas part of a broad investigation into questionable practices involvingauction rate securities, Missouri officials said. Missouri Secretary of State Robin Carnahan's office said the "special inspection" at the Wachovia Corp 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.
In addition to securities regulators from Missouri, regulators fromIllinois, Massachusetts, New Jersey, Pennsylvania and other states were partof the team entering Wachovia Securities' headquarters, the officials said. Missouri has also served subpoenas on more than a dozen Wachovia Securitiesagents and executives after receiving more than 70 complaints representingmore than $40 million in frozen investments over the last four months.
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