“…It’s not clear whether the current SEC inquiries will lead
to a full investigation either, but investment banks Credit Suisse
First Boston, Goldman Sachs & Co., and Bear Stearns Cos. have
confirmed reports in the Wall Street Journal that they’re giving
authorities information about how they distributed IPO shares. The
information includes: tape recordings of conversations between
bankers and investors, records of certain large trades in 1999 and
2000 for which bankers got commissions over 10 cents a share, and a
list of investors who got shares in certain IPOs.”
“We believe that our allocation considerations are consistent
with those employed by others in the industry,” said a New York
spokeswoman for Credit Suisse First Boston in a statement. “We are
cooperating fully with the governmental inquiries.”
“Morgan Stanley Dean Witter, another investment bank identified
by the Wall Street Journal as a probe target, declined to
comment.”
“In addition, VA Linux, the Sunnyvale software company,
confirmed that the SEC has asked it for information related to the
underwriting process for its December 1999 IPO, led by Credit
Suisse First Boston. That deal soared nearly 700 percent in its
first day of trading. “We don’t think we’re the focus, and we don’t
think it will affect our business,” said VA Linux spokesman Patrick
Fossenier.“