Securities regulators from several U.S. states on Thursday raided the St. Louis headquarters of Wachovia Securities, seeking documents and records on the company's sales practices.This does not sound like good news. Even it turns out to be nothing in the wake of bank runs and scares this will not instill public confidence.
The move is part of a broad investigation into questionable practices involving auction rate securities, Missouri officials said.
"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."
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.
But the biggest thing that stands out is that Wachovia is one of the companies "tossed to the dogs." Was Wachovia and Washington Mutual left off the restricted short sale list for a reason ? It is starting to look that way.