US state accuses CSFB of fraudulent research | FT

Massachusetts officials on Monday accused Credit Suisse First Boston of producing fraudulent research in a civil complaint that seeks about USD2m in restitution for the state’s investors and a greater separation of analysts and investment bankers.

However, the complaint stops short of radical remedies such as spinning off CSFB’s research operations. Instead, it calls for reforms meant to insulate analysts from dealmakers. CSFB said the complaint was “riddled with misleading statements and inaccuracies” and could undermine industry-wide efforts to devise new rules for Wall Street research. It said the complaint offered no evidence of “false research reports”. more