Credit Suisse gets subpoenas over Refco Wed Nov 9, 2005 1:45 AM ET
NEW YORK (Reuters) - Credit Suisse Group Inc. (CSGN.VX: Quote, Profile, Research), one of three underwriters for Refco Inc.'s (RFXCQ.PK: Quote, Profile, Research) initial public offering, on Tuesday said it received regulatory subpoenas regarding the commodities and futures broker, which sought bankruptcy protection in October.
Switzerland's second largest bank said its Credit Suisse First Boston LLC unit and affiliates received subpoenas and information requests from various regulators, including the U.S. Securities and Exchange Commission, regarding Refco. The company said it is cooperating.
Credit Suisse disclosed the subpoenas in a quarterly report filed with the SEC. It did not immediately return calls seeking further comment.
The subpoenas show that investigations concerning Refco's collapse are expanding. Credit Suisse underwrote Refco's $583 million IPO in August with the U.S. investment banking units of Bank of America Corp. (BAC.N: Quote, Profile, Research) and Goldman Sachs Group Inc.
(GS.N: Quote, Profile, Research).
Brad Hintz, a Sanford C. Bernstein & Co. analyst, last month said Refco's bankers might face up to $188.7 million of costs from their former client's collapse.
Refco also sold $600 million of junk bonds, in a sale handled by Bank of America, Credit Suisse and Deutsche Bank AG (DBKGn.DE: Quote, Profile, Research).
Refco filed for protection from creditors on October 17, a week after ousting chief executive Phillip Bennett and accusing him of hiding $430 million of debt. Prosecutors on October 12 charged Bennett with securities fraud.
Five groups have submitted offers to buy all or part of Refco. An auction is set for Wednesday.
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