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CSFB hires ex-SEC official
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August 20, 2001: 2:00 p.m. ET
Investment bank, subject of IPO probe, names Lynch general counsel
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NEW YORK (CNNfn) - Credit Suisse First Boston, currently the subject of a federal probe investigating is handling of IPO allocations, on Monday named former Securities and Exchange Commission enforcement director Gary Lynch to be its global general counsel.
Lynch will report directly to CSFB CEO John Mack, effective Oct. 1, and replace current general counsel Joseph McLaughlin. McLaughlin will serve as chairman of CSFB Foundation Trust, the investment bank's philanthropic arm, the company said in a statement.
Lynch was director of the SEC's enforcement division from 1985 to 1989. He is also a former partner of law firm Davis Polk & Wardwell.
In June, CSFB, the investment banking unit of Credit Suisse Group, fired three brokers in its San Francisco office as the result of a probe into its allocation of initial public offerings. The investigation alleges the bank requires big investors to pony up large commissions in exchange for access to IPOs.
CSFB has taken on significant changes since the IPO probe became public. In July, the investment bank ousted CEO Allen Wheat and named John Mack his replacement, a move many viewed as a result of the IPO investigation.
Wheat's position had come under pressure amid recent allegations and investigations by the SEC and the National Association of Securities Dealers that the investment bank had improperly allocated shares in IPOs. Mack, the former CEO of Morgan Stanley, is expected to shake up the bank. 
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