CSFB To Pay $100 Million To Settle Stock Probe
According to a Wall Street
Journal report on Tuesday, Switzerland's second largest bank is to pay $100
million to resolve a US federal investigation over its treatment of initial
public offerings (IPOs) during the technology boom. During the period when the
bubble was at its biggest, the securities arm of CSFB reaped more than $700
million in fees for helping new technology companies to float themselves, according
to the WSJ. However, there were accusations that favoured investors were given
greater opportunities to invest in these hot stock offerings, which quickly
led to an 18 month federal investigation. As well as the $100 million
settlement figure, which it is thought will be officially announced by the organisation
at the end of this year, the settlement agreement is thought to contain a pledge
from CSFB to prevent any future improprieties in stock offerings, the details
of which are still being hammered out between the Swiss bank, the Securities
and Exchange Commission, and the National Association of Securities Dealers.
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