Prosecutors End Dispute Over Quattrone E-Mails

A 2-year-old series of e-mails between Wall Street star Frank Quattrone and his Credit Suisse First Boston colleagues has sparked a lot of interest -- and not just among his fellow investment bankers.

The disclosure of the potentially incriminating e-mails last week set off a turf war among criminal prosecutors over who would investigate Quattrone.

The skirmish ended Friday when James B. Comey, the U.S. attorney in Manhattan, and Eliot Spitzer, the New York attorney general, said they were “fully cooperating to advance the investigation.”

The announcement followed several days of negotiations between representatives of the two men. The issue was resolved after two phone calls between Comey and Spitzer on Friday, said a source close to the matter.

The December 2000 e-mails indicate that the Silicon Valley-based banker may have been aware of government probes when he advised employees to get rid of unneeded files.

That has sparked concern among prosecutors that he sought to obstruct justice. Quattrone has denied wrongdoing.

At one point, the U.S. attorney’s office asked to take over an investigation that Spitzer was heading, the source said.

The U.S. attorney’s office studied CSFB’s handling of initial public stock offerings but dropped its probe in late 2001 without bringing charges.

The U.S. attorney is concerned that information may have been intentionally withheld, the source said.