My friend got in an accident, and is paralyzed from neck down. In presence of doctor and nurse, he appointed me as POA, and papers were signed and notorized.
I attempted to get bank statements to submit to social security, and I was informed by Wachovia that I need to be the legal guardian to receive the information. What are my options
That is not necessarily true. There are other options, but without a full review of the situation with your friend, it is impossible to give proper advice.
The bank cannot refuse a POA unless they have a good faith belief that there is a problem with your friend. Therefore I question whether they know something I cannot tell here.