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Credit Suisse First Boston Fined $100 Million

Posted by ryuzaki0 on from the all-fun-and-games-until-someone-gets-an-eye-put-out dept.

A couple of people wrote in to note that Credit Suisse First Boston, which was the underwriter for VA Linux ? ' IPO, has been fined $100 million for actions they took in that and other high-tech IPO's during the stock market boom. CSFB allocated shares of certain IPO's to customers who made kickbacks to CSFB. Here's their side of the story. There's also an additional statement by the regulators and CSFB's settlement agreement (PDF).

2 of 178 comments (clear)

  1. It's a civil matter, not criminal by mr_death · · Score: 4, Informative
    Why do the rich just get fined?

    Because the "charge" involved a violation of SEC and NASD regulations, not a criminal charge (e.g., Murder.) The $100m is a combination of "disgorged profits" (you have to love the legalese) and a fine.

    This has nothing to do with "the Swiss" -- CSFB is a multinational.

    --
    It's Linux, damnit! Pay no attention to renaming attempts by self-aggrandizing blowhards.
  2. Wall Street Shenanigans by solman · · Score: 5, Informative

    The extraordinary thing about this is how lightly CSFB (and the street as a whole) is getting off. The profits from inappropriate IPO allocations alone substantially exceeded the penalties.

    No penalties will ever be assessed against the hundreds of analysts who hyped internet stocks in exchange for those companies giving their firms a slice of the investment banking business.

    Ask any analyst from any wall street firm, sell side or buy side, and they will tell you that everybody does this. Compare the SEC's treatment of big firms doing outwardly crooked things to their treatment of the little guy.

    It looks like they're too busy busting 15-year olds to attack the real stock manipulators.