Frank Quattrone could be back on the stand

The jury in the first trial could not agree on a verdict, allowing Mr Quattrone, once a star at top Wall Street firm Credit Suisse First Boston (CFSB), to walk free.

At issue was whether Mr Quattrone had knowingly blocked investigations into so-called "share spinning".

CSFB and its fellow banks have been accused of pushing shares in lucrative dot.com flotations towards favoured clients to secure banking business from them.

E-mails from Mr Quattrone, prosecutors allege, show he encouraged staff to destroy records despite knowing an investigation into the practice was under way.

His lawyers, unsurprisingly, said the decision to call for a fresh trial was unjustified.

"We are disappointed... because (Quattrone) is innocent," attorney John Keker said.

They now have the chance to prepare him better for cross-examination - an area where he came badly unstuck in the first trial.

While on the stand he was forced to contradict himself, admitting to having a hand in allocating such "hot stocks" as Amazon and Cisco Systems when he had formerly denied any involvement.

If found guilty, Mr Quattrone could have faced a maximum penalty of 25 years in jail, though federal guidelines recommend a lighter sentence.

State and federal prosectors closed an investigation into CSFB in 2001. The bank paid $100m to settle civil charges without admitting wrongdoing.

Mr Quattrone is said to have made a personal fortune of $200m during the dot.com boom.