Risk & Compliance

CSFB Fires Investment Banking CEO Amid IPO Probes

Allen Wheat was replaced by former Morgan Stanley Dean Witter president.
CFO.com StaffJuly 12, 2001

Credit Suisse Group fired Allen Wheat, the chief executive of the firm’s investment banking group, Thursday amid a government probe into how the firm allocated IPOs during the tech-stock boom, according to an Associated Press report.

Wheat, who ran CSFB since 1997, was replaced by former Morgan Stanley Dean Witter & Co. president and COO John Mack, the AP reported.

Under Wheat’s tenure federal regulators began investigating whether CSFB and other Wall Street firms conspired to hike the fees they charge to conduct IPOs. Credit Suisse has also been a target for individual investors who have sued a number of big Wall Street firms, for allegedly manipulating the IPO market to give their best clients favorable prices at the expense of individual investors.