The Securities and Exchange Commission is looking into the relationship between the former First Union Corp. and KPMG, according to published reports.

First Union, now known as Wachovia Corp. after a 2001 merger, allegedly referred wealthy clients to KPMG for tax shelter advice from 1997 to 2002 -- while KPMG was already serving as auditor and client for the banking firm, according to the Charlotte Observer. KPMG served as First Union's outside auditor during the sale of the shelters, whose legality has been called into question by the federal government.

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