Quattrone Defends Actions

by Glen Shapiro, LawAndTax-News.com, New York

14 October 2003

Testifying on Friday, former CSFB star investment banker, Frank Quattrone alleged that the financial services firm's counsel, David Brodsky did not inform him of a government subpoena regarding stock allocations for 'hot' IPOs until two days after he had sent a potentially incriminating e-mail urging CSFB employees to "clean out" their files.

"Mr Brodsky was going to be embarrassed because he hadn't told people to preserve documents that were required by the subpoena," he explained, contradicting the lawyer's testimony on this point.

Mr Quattrone went on to suggest that he did not "for a moment" think that his forwarding of an e-mail advocating administrative housekeeping would cause people to destroy subpoenaed documents, explaining that to the best of his knowledge "there was no relevance whatsoever about what was in the investment banking files and what the investigation was about."

However, according to Reuters, the former investment banker also contradicted earlier testimony over his role in the allocation of stock in initial public offerings. He reportedly conceded that "it is possible I looked at partial lists of allocations before final decisions were made."

He went on to admit that: "I might have taken part in some discussions. I did not make any decisions."

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