TORONTO-Canada’s Research in Motion (RIM) is facing allegations that it agreed to pay New York broker Credit Suisse First Boston (CSFB) to ensure analyst coverage. CSFB could face prosecution as a result of its flap with the Canadian technology company.
In e-mails leaked by securities investigators, it is suggested that CSFB withheld analyst coverage on RIM until it paid US$1.8 million in fees that the brokerage firm felt it was owed for work on a stock offering. The messages released to the press state that RIM eventually paid the outstanding sum, and coverage of the company was then resumed.
CSFB now is just the latest Wall Street giant to be accused of abusing its research side in search of fees.
In the late stages of the tech stock boom, wireless manufacturer RIM sold more than US$600 million worth of shares to the public. While neither side is talking, it remains puzzling why CSFB and RIM clashed over US$1.8 million.
