Wachovia Securities, until last October A.G. Edwards, was raided by regulators from Missouri, Illinois, Massachusetts, New Jersey, Pennsylvania and a, “sixth state that asked not to be identified”, today. In addition, some number more than a dozen employees of the firm were subpoenaed.

It appears that they had some questions about the collapse of the auction rate securities market, and Wachovia refused to respond to queries.

I expect to see a lot more of this as the markets swirl down the drain.