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To: craig crawford who wrote (133028)	10/18/2001 2:07:48 AM
From: H James Morris	Read Replies (2) \| Respond to of 164684

Nothings changed on Wall Street, but think about this other consiracy theory. Maybe it was angry investors who flew the jets into Morgan Stanleys headquarters. >Published: October 17 2001 20:44 \| Last Updated: October 17 2001 23:13 Credit Suisse First Boston has approached US securities regulators to try to reach a settlement in the investigation into the investment bank's allocations of shares in high-technology initial public offerings. In talks with the Securities and Exchange Commission, the US financial watchdog, CSFB has indicated that it may be prepared to negotiate a settlement. According to people close to the discussions, CSFB and the regulators have not yet entered into detailed negotiations and a settlement - if one can be agreed - is some way off. However, the approach indicates that CSFB's new management is keen to bring an end to the investigation which has hung over the bank for more than a year. John Mack, new chief executive, has indicated his intention to tighten up the bank's internal controls and rebuild its reputation. Following his arrival in July, Mr Mack appointed a senior Wall Street lawyer, Stephen Volk, as CSFB's vice-chairman. This was followed by the hiring in August of Gary Lynch, a former head of enforcement at the SEC, as general counsel. CSFB's approach could signal the end of the probe into whether nearly a dozen investment banks used illegal arrangements to manipulate share prices and earn kickbacks in exchange for the most sought-after initial public offering shares during the technology boom. Although CSFB is at the centre of the inquiry, other banks such as Goldman Sachs and Morgan Stanley have also come under scrutiny. CSFB is understood to be interested in reaching a deal if the terms do not do any lasting damage to its business. Meanwhile, the SEC is likely to seek an agreement which sets out guidelines for the allocation of shares in IPOs. "What the SEC needs from this case is an opportunity to create some standards in an area where there are none," said Richard Phillips, senior partner at Kirkpatrick & Lockhart, the San Francisco law firm. Any settlement would also need to have the agreement of the National Association of Securities Dealers and the US Attorney's Office, which have both been conducting their own investigations. CSFB, the SEC and the NASD all declined to comment. Any settlement is likely to be closely watched by angry investors who lost millions of dollars after the market crashed. More than 800 private law suits have been filed against the investment banks and the firms they brought to market.