Feeds

CSFB set to pay $100m fine over dotcom IPOs

Lawsuits still outstanding

  • alert
  • submit to reddit

Internet Security Threat Report 2014

Credit Suisse First Boston (CSFB) is preparing to pay a record $100 million (£70 million) fine to the Wall Street watchdog Securities and Exchange Commission (SEC) for breaking the rules during the dotcom boom.

The SEC has completed an 18-month investigation into all the main Wall Street banks over allegations of profiteering when Internet companies were floated.

Among the allegations are that banks demanded an inflated commission from investors to allow them to buy in Internet stocks; that only those people that agreed to buy more shares after the flotation - keeping the price up - were allocated stock; and that analysts were allowed to buy shares in the company they were floating at a discount.

CSFB has refused to comment on the huge fine but just about every business hack in New York has got the same information, so it looks like a certainty. In the settlement, CSFB won't admit to any wrongdoing or comment on any of the dodgy practices which saw it sack three brokers in June.

However, while this will be one of the biggest ever fines paid to the SEC, CSFB is still in line to pay out hundreds of millions more thanks to over 1,000 lawsuits filed by angry investors who claim the float process was corrupt. They are demanding billions of dollars. ®

Related Story

Banks sued over dotcom float fix allegations

Top 5 reasons to deploy VMware with Tegile

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
The hidden costs of self-signed SSL certificates
Exploring the true TCO for self-signed SSL certificates, including a side-by-side comparison of a self-signed architecture versus working with a third-party SSL vendor.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.