Mar.18, 2010, Source: Associated Press

Susan Merrill, the enforcement director at Wall Street's self-policing arm, told her staff on Wednesday that she plans to step down, according to the Financial Industry Regulatory Authority. The exact date of Merrill's resignation and her next job are not known. No successor has been named.

Merrill was hired into the job by then-Finra head Mary Schapiro, who has since become the chairman of the Securities and Exchange Commission.

Finra is funded with industry fees and supervised by the SEC. The group helps the agency oversee brokerages and other Wall Street players. It has been accused of failing to do more to prevent the Bernard Madoff and R. Allen Stanford frauds.

-- Zachary A. Goldfarb

LEGAL

Wachovia settles money-laundering case

Wachovia will pay $160 million to settle a federal investigation into laundering of drug profits through Mexican exchange houses. It's the largest case of its kind brought against a U.S. bank, prosecutors said.

The probe, which began in 2005 when a Drug Enforcement Administration narcotics dog detected cocaine traces in an airplane, ultimately uncovered at least $110 million in drug profits laundered from Mexico through Wachovia. The settlement includes forfeiture in that amount plus a $50 million fine.

Under the agreement, Wachovia and its executives will avoid criminal prosecution in return for the $160 million payment and significant improvements in the bank's anti-money-laundering program.

Wachovia, now a unit of San Francisco-based Wells Fargo, said in a statement that Wells Fargo had set aside money to pay the settlement. The statement said Wachovia ended its relationships with foreign currency exchange houses in 2008.