Frank Quattrone earned a fortune at First Boston

Mr Quattrone, whose original trial collapsed last October when the jury could not agree on a verdict, is again accused of obstructing a federal probe.

Formerly of Credit Suisse First Boston (CFSB), he was alleged to have blocked investigations into how CSFB allocated shares in hot internet stocks.

He is alleged to have asked staff to wipe e-mails about the firm's actions.

Prosecutors say that when he encouraged the clean-out, he already knew the investigation was under way.

The probe - which was later closed without criminal charges being filed - arose out of suspicions about how CSFB decided who got to participate in hot technology flotations.

Like many other investment banks, the firm was accused of offering potential clients the chance to take a slice of the initial offering - which would soar in value once the shares started trading - in exchange for more of their business.

'Routine'

But Mr Quattrone's lawyers contend that when he encouraged staff to obey instructions to "catch up on file cleaning" in December 2000, he was simply following CSFB's usual policy of routinely destroying redundant documents.

They had earlier called unsuccessfully for the retrial to take place in Mr Quattrone's native California.

It is unknown whether Mr Quattrone, who made as much as $120m a year at CSFB, will take to the stand again in the retrial, after his performance was criticised as being too combative during the first hearing.

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

He resigned from CSFB in March 2003 after being suspended when the allegations of e-mail shredding emerged.