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State regulators continue talks with Wachovia over auction rate securities

(UPI file photo, Bill Greenblatt)

By AP/KWMU

St. Louis – Missouri securities regulators are negotiating with executives of Wachovia Securities, to find ways to help investors holding auction rate securities.

Secretary of State Robin Carnahan said negotiations began Friday and will continue this week.

Auction rate securities had been considered a safe investment, but the market collapsed in February amid the overall downturn in the credit market.

Carnahan said Missouri is the lead state in the national task force investigating Wachovia's sales practices of auction rate securities.

Her office and regulators from other states went to the company's St. Louis headquarters last month to request documents and records.

Wachovia says it looks forward to further discussions.

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