CSFB - Update On Criminal Complaint

The Wall Street Journal reports that Massachusetts state securities regulators have now filed an administrative complaint against CSFB, alleging that the firm mislead investors by allowing its investment banking division to 'exert undue influence on stock research'.

According to The Times, however, the firm has written a two-page letter to Matthew Nestor, the chief Massachusetts securities regulator, asking for the state to withdraw the criminal complaint and instead negotiate with the industry and regulators to agree a global settlement.

On a more positive note, star IPO banker Frank Quattrone is not expected to be charged, although it is thought that he will be called as a witness in criminal proceedings.

In the meantime, John Mack, the CSFB CEO and co-head of Credit Suisse Group, has confirmed that the firm will remain an integral part of the group. He said: 'First Boston couldn't exist separately..... It could not stand alone.'

Mack also predicted that industry job cuts will continue well into next year, although he did say that he thought that the stock market is 'at the bottom, or very near the bottom.'

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