Crédit Suisse First Boston
 |
|
| Corporation | |
| Industry | Investment services |
| Fate | Merged into reorganised investment banking division of Credit Suisse |
| Successor | Credit Suisse's investment banking division |
| Founded | 1996 |
| Headquarters |
Zürich, Switzerland New York City, New York, United States |
| Products |
Financial Services Investment Banking |
| Website | www |
Credit Suisse First Boston (informally CSFB) was the investment banking division of Credit Suisse Group, prior to 2006. It was active in investment banking, capital markets and financial services.
In 2006, as part of a major rebranding exercise to communicate as an integrated organization - 'Credit Suisse' to clients, employees and shareholders; the group retired the 'First Boston' name and amalgamated the CSFB operations to the newly reorganized investment banking division of Credit Suisse.
In 1978, Credit Suisse and First Boston Corporation formed a London-based 50-50 investment banking joint venture called the Financière Crédit Suisse-First Boston. This joint venture later became the operating name of Credit Suisse's investment banking operations.
Credit Suisse acquired a 44% stake in First Boston in 1988. The investment bank acquired its shares held by the public and the company was taken private. In 1989, the junk bond market collapsed, leaving First Boston unable to redeem hundreds of millions it had lent for the leveraged buyout of Ohio Mattress Company, maker of Sealy mattresses, a deal that became known as "the burning bed". Credit Suisse bailed them out and acquired a controlling stake in 1990. Although such an arrangement was arguably illegal under the Glass–Steagall Act, the Federal Reserve, the U.S. bank regulator, concluded that the integrity of the financial markets was better served by avoiding the bankruptcy of a significant investment bank like First Boston even though it meant a de facto merger of a commercial bank with an investment bank.
In the mid-1990s, Credit Suisse renamed itself CS First Boston as Credit Suisse First Boston, or CSFB, worldwide. The terms Credit Suisse First Boston and CSFB are generally used to refer to the global investment bank, and not only the original London franchise.
Conflict with Credit Suisse First Boston, or CSFB, in Europe began creating problems for Credit Suisse. First Boston Corporation in New York and CSFB in London had their own management teams, with competing salesmen in each other’s territory and in the Pacific region. In 1996, Credit Suisse purchased the remaining stake of CS First Boston from its management and rebranded the European, U.S., and Asia Pacific investment banks as Credit Suisse First Boston, making one global brand. In the late 1990s, CSFB purchased the equity division of Barclays Bank, Barclays de Zoete Wedd ("BZW"). BZW was considered second-tier and CSFB reportedly bought BZW from Barclays for £1 plus assumption of debt - primarily to obtain BZW's client list.
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Wikipedia