This is a tough spot for a bank. Wachovia has long denied that it knew anything about the fraudulent tendencies of certain telemarketing. But the New York Times reports that "newly released documents...now show that Wachovia had long known about allegations of fraud and that the bank, in fact, solicited business from companies it knew had been accused of telemarketing crimes." There were many email warnings sent around, to little apparent effect. Turns out the bank was making a ton of money on the fraudulent transactions; they would charge a fee to a fraudulent company when the customer spotted a bad transaction. The ball is in Wachovia's court now. Amends must be made.  

For more:
- here's the New York Times article