Wachovia Joins the Party and Settles With Regulators

Wachovia has agreed to buy back $9 billion in auction-rate debt, in a settlement with regulators.  In addition, Wachovia will pay a $50 million fine and make no-interest loans available for investors who need immediate liquidity.  Just in case you wanted access to your CASH instruments, Wachovia will gladly give you a no-interest loan against them.  As is customary, the bank is settling without admitting or denying guilt.  The bank is paying a $50 million fine and taking another $275 million charge against earnings to prove how not guilty it is!  In any event, Wachovia can get back to business, figuring out how to get rid of the $120 billion option arm albatross still wrapped around its balance sheet.