Credit Suisse Group investment banker Hafiz Naseem, charged Thursday with leaking confidential information about pending merger agreements, was denied bail Friday on the grounds that he is a flight risk.
Among the merger agreements that the U.S. Securities and Exchange Commission has accused Naseem of revealing is a deal involving Texas utility giant TXU Corp.
Naseem will be detained until he gets a substantial co-signer for bail bond, sources told CNBC.
Naseem started working at Credit Suisse Group in March 2006 and immediately began sharing information about pending business deals with a Pakistani banker, the SEC alleged.
From his office telephone, regulators charged, Naseem called the banker at home and on his cell phone in advance of -- and frequently the same day or the day before -- merger announcements. Naseem served as an investment banker or financial adviser in all the mergers involved, the SEC said.