Monday, January 22, 2007

Online Gambling Underwriters Face Subpoenas in U.S.

HSBC, Credit Suisse, Deutsche Bank and Dresdner Kleinwort are among the investment banks facing subpoenas from the Justice Department as part of its widening investigation into the multibillion-dollar online gambling industry, The New York Times reported. The subpoenas were apparently issued to firms that had underwritten the initial public offerings of some of the most popular online gambling sites, many of which were held in London.The subpoenas, earlier reported by The Sunday Times of London, appeared to be part of an indirect but aggressive and far-reaching attack by federal prosecutors on the Internet gambling industry just two weeks before one of its biggest days of the year, the Super Bowl.In the United Kingdom, several politicians and investment bankers had sharp criticism for the Justice Department's latest move. "I hope the department will stop and review its approach so that its behavior doesn't sour relations between us," Alan Duncan, Shadow Trade and Industry Secretary, was quoted as saying in the Times of London.
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