US regulators continued their clampdown on former Wall Street stars as it emerged on Friday that the National Association of Securities Dealers plans to file civil charges against Frank Quattrone.
Once a star investment banker who headed up Credit Suisse First Boston’s technology banking arm, Mr Quattrone will now face allegations over his role in “spinning”, a process where hot stocks in initial public offerings were offered to favoured executives.
The charges will also include allegations that he failed to supervise CSFB’s technology-stock analysts, according to the Wall Sreet Journal.
CSFB on Friday declined to comment.
News of the investigation is the latest in a series of wrangles between Wall Street and the regulators over the excesses of the internet boom.
Last December Eliot Spitzer, the attorney-general, finally reached an agreement with Wall Street, with the world’s leading investment banks agreeing to pay more than $1.4bn (Â£890m) and make sweeping reforms to settle accusations that their research analysts misled investors during the 1990s stock market bubble.
But he also warned at the time that there would “be appropriate sanctions on individuals.”
Jack Grubman, once Salomon Smith Barney’s champion of rotten stocks like WorldCom, has already been fined $15m.