VIRGINIA RESIDENT WRITES THAT HE WANTED TO ENTER INTO CASH POSITIONS WHEN AUCTIONS FAILED AND HE WAS UNABLE TO LIQUIDATE AUCTION RATE PREFERRED SECURITIES PURCHASED BETWEEN 04/27/07 AND 02/04/08. CLIENT WRITES THAT HE INTENDS TO HOLD WACHOVIA LIABLE SHOULD HE SUSTAIN ANY DAMAGES. CLIENT'S MAKE NO CLAIM FOR PRESENT DAMAGES BUT STATES THAT HE WILL PURSUE FA AND FIRM FOR ANY LOSSES HE MIGHT INCUR.

$100,000.00

THIS MATTER INVOLVES THE SALE OF AUCTION RATE SECURITIES (ARS). THE TRANSACTION(S) AT ISSUE TOOK PLACE BEFORE MID-FEBRUARY 2008, WHEN THE ARS MARKET SUFFERED WIDESPREAD AUCTION FAILURES AND ILLIQUIDITY. THE FINANCIAL ADVISOR DID NOT CAUSE, CONTRIBUTE OR HAVE ANY CONTROL WHATSOEVER OVER THESE MARKET EVENTS. THE FIRM REACHED AGREEMENT WITH CERTAIN OF ITS REGULATORS, PURSUANT TO WHICH IT REPURCHASED ARS FOR THEIR FULL PAR VALUE FROM CERTAIN CLIENTS, INCLUDING THE INSTANT CLIENT, WHETHER THEY COMPLAINED OR NOT. THE FINANCIAL ADVISOR WAS NOT A PARTY TO THAT AGREEMENT, DID NOT MAKE ANY PAYMENTS TO THE CLIENT, AND WAS NOT ASKED TO AND DID NOT CONTRIBUTE TO THE REPURCHASE AMOUNT. THE SETTLEMENT AMOUNT IN ITEM 11 ABOVE REFLECTS THE PAR VALUE OF THE REPURCHASED ARS, AS REQUIRED BY FINRA REGULATORY NOTICE 09-12.

VIRGINIA RESIDENT ALLEGES THAT UNIT TRUSTS SOLD TO HER WERE UNSUITABLE AND WANTS AN ADJUSTMENT MADE TO HER ACCOUNT.

$10,000.00

$10,074.00

THE NASD ARBITRATION PANEL AWARDED CUSTOMER $10,074.