Wachovia Settles Bond Bid-Rigging Claims For $148M

Law360, New York (December 8, 2011, 1:37 PM EST) -- Wachovia Bank NA has agreed to pay $148 million to settle allegations that it secretly rigged bids on municipal bond-related investments, the U.S. Securities and Exchange Commission and U.S. Department of Justice said Thursday.

Wachovia, which is now a part of Wells Fargo Bank NA following a merger, admits that former employees broke the law by rigging bids on so-called municipal derivatives, investment products connected with municipal bonds, the DOJ's antitrust division said.

This settlement follows similar agreements that federal investigators have reached with other major...
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