Regulators are reviewing an e-mail sent by investment bankers at Credit Suisse First Boston reminding the firm’s technology bankers to purge certain e-mails and other documents, as the securities firm braced for investor lawsuits over IPOs whose stock prices had tumbled, people familiar with the matter told The Wall Street Journal.
The e-mail, dated Dec. 4, 2000 which included a reply endorsing the advice from star CSFB technology investment banker Frank Quattrone doesn’t mention government regulatory probes of initial public offerings. It was sent just before the first news reports about the regulators’ interest in CSFB. The message was signed by Bill Brady, one of Mr. Quattrone’s two top deputies, and two other CSFB bankers, with a subject line: “Time to clean up those files.” It advised employees in the technology banking group to “catch up on file cleanup” before they left for the holidays.
CSFB, a unit of Credit Suisse Group , says firm officials sent additional e-mails Dec. 6 and Dec. 7 telling employees to ignore this advice.
CSFB said in a statement that the firm’s “document policies comply with all applicable laws and regulations, and are consistent with industry standards. In this instance, CSFB took appropriate steps to ensure that all relevant documents would be preserved and provided to regulators. We strongly believe that CSFB’s employees acted appropriately in this matter.”
Mr. Quattrone and Mr. Brady declined to comment through a spokeswoman.