NASAA STATEMENT ON WACHOVIA CAPITAL MARKETS LLC SETTLEMENT
 
WASHINGON, DC. (July 5, 2006)—North American Securities Administrators Association (NASAA) President and Wisconsin Securities Administrator Patricia D. Struck, released the following statement today after state securities regulators announced a $25 million multistate settlement of enforcement actions against Wachovia Capital Markets LLC involving allegations of potential conflicts of interest between the firm’s research and investment banking operations:

“The settlement announced today by state securities regulators is a positive step in our ongoing efforts to strengthen investor confidence and foster fairness in our capital markets.

“A multistate team of investigators worked long and hard on this investigation, uncovering yet another example of the potential conflicts of interest between research analysts and investment banking that has undermined investor confidence.

“Today’s multistate agreement is a reflection of the ongoing efforts by state securities regulators to help restore investor confidence in our financial markets by ensuring that they are treated fairly and provided with objective research. It also should serve as an important reminder to the securities industry of the significance regulators place on the proper supervision of employees.

“This agreement is the result of months of intense negotiations and many thousands of hours of dedicated effort by state securities regulators, led by officials in Nebraska, Virginia, North Carolina, with significant assistance from Utah and Alabama, and contributions from Georgia, Maine, Connecticut, and New Jersey.”