Wachovia Faces Probes on 2 Fronts

Wachovia Corp., the No. 4 U.S. bank, said its retail brokerage was being investigated over payments from mutual fund companies, and its broker-dealer unit might face charges over alleged conflicts between stock research and investment banking.

The Charlotte, N.C.-based company said the Securities and Exchange Commission was investigating how well the brokerage, Wachovia Securities, disclosed revenue-sharing arrangements with fund companies.

Separately, Wachovia said “various regulators” were probing the broker-dealer unit, Wachovia Capital Markets, over alleged conflicts of interest between its equity research and investment banking departments. It said it was in talks to resolve the probes.