“CS First Boston will be global with a presence in all regions where it has a competitive advantage,” David Miller, global head of CS First Boston, wrote in a memo to staff.
The unit will be carved out of the Swiss lender.
“Over time, CS First Boston’s structure will evolve to become an independent standalone investment bank, enabling it to attract third party capital and include employee ownership,” Miller wrote. The move to become “an M&A boutique with capital markets expertise” will start immediately, he wrote.
The Swiss investment banking and capital markets business will be moved to the company’s Swiss Bank to offer services in its home market, according to the memo.
Credit Suisse announced on Thursday it would raise 4 billion Swiss francs ($4 billion) from investors, cut thousands of jobs and shift its focus from investment banking toward rich clients as the bank attempts to put years of scandals behind it, sending its shares sliding. read more
The company’s plan to scale back its investment bank and reallocate capital to its global wealth management business will involve substantial execution risk, according to Fitch Ratings.
However, if the restructuring is successful, it could make Credit Suisse’s earnings less volatile, Fitch said. The bank has traditionally allocated a bigger share of capital to investment banking than its global peers, according to the ratings agency.
Ken Hao, chairman and managing partner of private equity firm Silver Lake, said it looks forward to working with CS First Boston.
“We have worked with the team at CS First Boston for many years, and they have provided innovative financing solutions for Silver Lake portfolio companies such as Dell, Alibaba and Broadcom,” he told Reuters via email.
CS First Boston will maintain strong ties to Credit Suisse Group, according to the memo. The unit will work with the Swiss bank’s markets business, particularly in cash equities, equity derivatives and securities research, it said.
It will also work closely with Credit Suisse’s wealth management business to offer share-backed lending and structured credit to clients in Asia.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
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