The Feds are looking into whether drug money was laundered by Wachovia (NYSE: WB). The investigation is "part of a broad probe of alleged laundering of drug proceeds by Mexican and Colombian money-transfer companies," according to The Wall Street Journal (subscription required).
Several companies with accounts that have been seized claim to be legitimate businesses and that if they cannot get at their funds, they may go out of business.
The open question is whether Wachovia employees knew about the transactions.
It is hard to imagine a well-run bank like Wachovia would be involved in such blatant aid to drug operations from outside the U.S. Perhaps that is why its shares are down almost 50% this year.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
4-26-2008 @ 5:27PM
jojo said...
I don't see what's so hard to imagine....it wasn't long ago that Wachovia was also involved in some way to be laundering money and /or doing business with muslim terrorists.
Don't you watch the news?
4-26-2008 @ 6:32PM
william lindblad said...
I don't see where this is hard to believe. All laundering is NOT from drugs or weapons, on the contrary, it's mostly from things that we all take for granted. Fakes/forgeries have to top the list. It ranges from Louis Vuitton to Tiffany and every other name brand out there. Those that make these items are usually legitimate business appearing and the money made gets transferred and invested. NO bank would suspect!!!
It's a mutil billion dollar business and has been going on since for centuries - they have a lot of practice at not getting caught. Ever buy a 15.00 RoleX? The clone looks just as good as the real one.
4-27-2008 @ 5:26AM
al coholic said...
And probably keeps better time....LOL
4-28-2008 @ 12:28AM
Elizabeth B. Earnhardt said...
Disgusted with Wachovia. Will be making some changes.