Wachovia announced May 31 that it will acquire A. G. Edwards and fold it into Wachovia Securities, LLC, creating what Wachovia called the “second largest retail brokerage firm in the U.S.,” which will be headquartered in St. Louis. When the deal closes, A. G. Edwards’s current chairman and CEO, Robert Bagby, is slated to become chairman of the united broker/dealer, with Wachovia Securities’ current president and CEO, Daniel Ludeman, to become CEO and president of the new brokerage entity. The deal was estimated to be worth approximately $6.8 billion at the time of the announcement…

Prudential Financial is closing Prudential Equity Group, suspending the group’s institutional equity research coverage and discontinuing the equity group’s trading and sales arms in 13 cities, including Tokyo, London, Paris, Zurich, New York, Chicago, San Francisco, Washington, Atlanta, Boston, Cleveland, Philadelphia, and Kansas City. As of March 31, Prudential Financial had about $630 billion in assets under management…

The NASD has fined Citigroup Global Markets, Inc. $3 million to settle charges relating to the “use of misleading materials” in retirement seminars and meetings for BellSouth employees in North Carolina and South Carolina. As a result of these presentations, NASD charged in its complaint, more than 400 BellSouth employees opened more than 1,100 accounts with the Citigroup brokers. NASD also ordered Citigroup to pay approximately $12.2 million in restitution to more than 200 former BellSouth employees…

Janney Montgomery Scott, the venerable securities firm based in Philadelphia, named Timothy Scheve as its new president and CEO effective August 1, succeeding James Wolitarsky, who is leaving this summer after six years on the job. According to Janney, Scheve has 23 years of securities industry experience, including a period as chief executive of Legg Mason Wood Walker Inc., Legg Mason’s broker/dealer business, which Citigroup took over two years ago…

In February, NASD issued Notice to Members 07-12 soliciting comments on a proposal to amend Rule 3010(g) (Supervision-Definition of “Office of Supervisory Jurisdiction”). The NYSE/NASD rule harmonization committee recommended that NASD consider eliminating its definition of OSJ to prevent a location where the only activity being conducted is principal review and approval of research reports from being classified as an OSJ, and therefore a branch office. NYSE has taken the position that such locations are expressly exempt as “non-sales locations.” Based on comments from the industry that this proposal would create an “unintended burden” on firms, NASD is not proceeding with this proposal, and expects to propose to exempt from the definition of OSJ those locations where the only activity being conducted is principal review and approval of research reports.