Credit Suisse Group is mulling an idea to bring back the First Boston brand in order to strengthen its troubled investment banking business, reported Bloomberg.
Executives at the Swiss lender have proposed the idea to reintroduce the investment banking brand, which ceased to operate nearly 17 years ago, unnamed sources told the news agency.
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As part of the plan, Credit Suisse is looking to change the name of its US investment banking business.
The plan, if moves forward, could pave way for Credit Suisse to either spin off or isolate its investment banking arm in the end.
However, the bank has no immediate scheme to spin off that division, the sources added.
In a statement referred to by Bloomberg, an official from Credit Suisse said: “We have said we will update on progress on our comprehensive strategy review when we announce our third quarter earnings.
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By GlobalData“It would be premature to comment on any potential outcomes before then.”
During a global townhall meeting held earlier this month, board members of Credit Suisse gave an idea of allowing its senior dealmakers to own equity stakes at the bank.
At that time, it was not clear whether the members proposed for a full spinout. However, it made certain top bankers to assume that the idea was being explored, informed people privy to the discussions at that time.
In a separate development, Credit Suisse is looking to sell its entire securitised products group (SPG) unit, which is not making loss but requires huge capital investment, Bloomberg has reported.
Apollo Global Management and BNP Paribas have joined the list of suitors who are interested in buying at least portions of the unit, reported the agency citing sources familiar with the development.
