MIAMI - Banking giant Wachovia Corp. will pay $160 million to settle a federal investigation into laundering of illegal drug profits through Mexican exchange houses in the largest case of its kind ever brought against a U.S. bank, prosecutors said Wednesday. The inquiry uncovered at least $110 million in drug profits laundered from Mexico through Wachovia. The total settlement includes forfeiture in that amount plus a $50 million fine. The agreement means Wachovia and its executives will avoid criminal prosecution in return for the payment and significant improvements in its anti-money laundering program.

- Associated Press