‘Frank’s Friends’ feel the heat


Author: JT Smith

Wired.com reports on the SEC probe of Credit
Suisse First Boston and the possible connection with the placing of bankers John Schmidt and Mike Grunwald on administrative leave. “CSFB is being investigated by the U.S. Attorney’s office in Manhattan as well as the
Securities and Exchange Commission, and there have been reports that the two men’s
paid administrative leaves are related to the probes. The two agencies are said to be
looking at the possibility that CSFB traders demanded higher-than-usual commissions
from hedge funds and others hoping to get allocations of initial public offerings.

CSFB underwrote some of the hottest stock offerings during the Internet tech boom
including VA Linux, Razorfish, Handspring and MP3.com.” (VA Linux owns NewsForge.)


  • Open Source