Wachovia Corp. said Monday that the Securities and Exchange Commission is considering civil and administrative action against it in connection with bidding for municipal bonds.
The Charlotte bank gave few details, but it and other financial firms, including Bank of America Corp., have been sued this year over municipal bonds. The lawsuits say that employees of various banks rigged the auctions that determine the return that a municipality can get on its bond investment. Cities, counties, school districts and other government entities issue muni bonds to raise money for public projects, like roads or sewer plants.
Wachovia also said it has been subpoenaed by multiple state attorneys general over municipal bonds. The bank said it is cooperating with investigations.