Doubt Swirls Around Quattrone

A person familiar with CSFB's internal inquiry said that when Quattrone was first asked last week about the Dec. 4, 2000, email, he said he had not been aware of the IPO inquiry at the time the email was written. But late last week, CSFB General Counsel Gary Lynch discovered several emails indicating that Quattrone may indeed have known of the IPO allocation inquiry by the NASD and the SEC.

The source said Lynch uncovered several emails in which Quattrone and then CSFB General Counsel David Brodsky discussed that regulators were beginning to look into some of the firm's IPO practices. Those emails, written prior to the Dec. 4 email, offered Quattrone advice on what to tell corporate clients if they asked him about the regulatory inquiry.

Brodsky, now a partner in the New York office of Latham & Watkins, could not be reached for comment.

The NASD, meanwhile, recently notified Quattrone that he might face civil charges stemming from his dual role as CSFB's lead technology investment banker and the supervisor of some of the firm's tech analysts.

Last week, when news of the NASD charges was first reported, CSFB appeared ready to stand behind Quattrone. A statement released by the firm gave no indication that Quattrone would be put on administrative leave.

In its release, CSFB implied that no documents were destroyed. The firm said it "acted promptly to ensure that all relevant documents would be preserved and provided to authorities."

Quattrone's suspension is with pay.

Neither Quattrone, nor his lawyer, Kenneth Hausman, could be reached for comment.

Last week, however, Quattrone issued a statement in which he said he was cooperating with regulators and was "confident that the truth will prevail."

Quattrone, during the bull market's heyday, was among the Street's elite investment bankers and helped push CSFB to the top of the IPO rankings.