Authorities Probe Wachovia's Loan Practices

Law360, New York (November 20, 2008, 12:00 AM EST) -- Federal prosecutors and the U.S. Securities and Exchange Commission are investigating whether Wachovia Corp. misled investors about the quality of its loans and improperly lured consumers into loans they couldn't afford.

In a Bloomberg News report on Wednesday, Joseph Russoniello of the U.S. District Court for the Northern District of California said investigators are probing whether Golden West Financial, which Wachovia acquired in 2006, lured consumers into more expensive loans or falsified their financial data so that they could qualify.

Russoniello's office and SEC investigators are...
To view the full article, register now.