By Ben King, 22 January 2002 08:00
NEWS Investment bank Credit Suisse First Boston is today expected to hear whether it will be punished over the way it took companies public during the dot-com boom.
CSFB has been investigated for allegedly receiving inflated commissions in exchange for allocating extra shares to large buyers such as hedge funds when it took companies to the market in initial public offerings (IPOs).
The accusations focus on the frenzy of IPO activity in 1999 and 2000 when the stock market was at the top of the longest bull run in history, fuelled by enthusiasm for internet stocks.
The Securities and Exchange Commission is expected to vote on a final settlement today, the Financial Times reports, and it could force CSFB to shell out $100m, one of the largest payments on record, according to the paper.
The case is just one of many lawsuits against the investment banking business for alleged misconduct brought by angry investors who lost money during the dot-com bubble.
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