The special examiner in the
bankruptcy has withdrawn a subpoena he served on seven Credit Suisse First Boston executives, after the investment bank agreed Friday to make those employees available for testimony.
CSFB, a division of
Credit Suisse Group
, originally contested the subpoenas but backed down after reaching an agreement with the examiner, Neal Batson, about a time and place for those CSFB employees to provide the testimony he seeks.
A CSFB spokesman declined to comment, but pointed to an earlier statement in which the firm said it always intended to cooperate with Batson's request for information. The CSFB officials Batson seeks to question include Adebayo Ogunlesi, the firm's head of investment banking; Laurence Nath, a managing director and head of CSFB's structured finance group; and Curt Launer, the energy analyst who maintained a buy rating on Enron almost up until the moment the company filed for bankruptcy in December 2001.
Earlier this month, Batson issued a 2,100-page report that detailed how dozens of financial transactions arranged by Wall Street banks were used by Enron to inflate its earnings by almost $1 billion in 2000. CSFB, along with
, each played a major role in arranging some of those transactions.
So far, the only Wall Street bankers Batson has sought testimony from are the seven CSFB officials. But it is expected that he will seek testimony from others on Wall Street, as the inquiry into Enron's questionable financings continues.
Batson, for instance, previously has served a subpoena on McKinsey & Company, notifying the firm it may seek to take testimony from Richard Foster, a senior partner and director. McKinsey is said to be cooperating with Batson.
Jeffrey Skilling, Enron's former president and chief executive, joined Enron in 1990 from McKinsey, where he headed the firm's energy and chemical consulting group.