Wachovia Corp. disclosed in its recently filed 10-Q that the SEC’s Division of Enforcement has notified Wachovia Bank that it may recommend that the Commission file charges against it related to alleged anti-competitive bidding practices in municipal derivatives and investment products. Wachovia stated that it “has been informed that in connection with the bidding of various financial instruments associated with municipal securities, the staff of the Securities and Exchange Commission is considering recommending that the commission institute civil and/or administrative proceedings against” it.
As reported by Financial Planning, Wachovia joins several other firms that have disclosed that they have received Wells notices from the SEC with regard to this investigation, including Bear Stearns, Bank of America, Financial Security Assurance Holdings and UBS Securities. The SEC’s investigation is reportedly parallel to a criminal antitrust probe of such activities that is being conducted by the Justice Department.
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