Credit Suisse First Boston said Monday it placed investment banker Frank Quattrone on administrative leave due to information it learned Friday that raised questions about a response he gave to an internal inquiry and whether he acted appropriately when he sent out an e-mail about document retention procedures.
The Wall Street Journal reported Friday that the NASD told Quattrone that it would file charges against him alleging that he failed to supervise CSFB’s technology stock analysts.
A previous report in the paper detailed e-mails sent by Quattrone and another investment banker, Bill Brady, urging bankers to clean up their files days before the first news reports broke about securities regulators’ interest in CSFB.
In Monday’s statement, the firm said it placed Quattrone on leave after the information it learned raised questions about whether he knew about pending regulatory investigations when he sent out the e-mail and whether the e-mails were proper.
CSFB said that its legal department took the proper steps to retain documents after the e-mails were sent. The company added that it has notified the proper government and regulatory authorities and is cooperating with them.
The NASD notified Quattrone of its plan through a Wells notice, which gives him the chance to dispute the allegations before the agency decides to take action.
The notice also includes allegations involving Quattrone’s role in the securities firm’s allocation of hot initial public offerings to personal brokerage accounts of executives who were also CSFB investment-banking clients, a practice recently outlawed by federal regulators, according to the Journal.