 Full speed ahead for the combined operation? |
Swiss bank Credit Suisse is to integrate its private investment bank Credit Suisse First Boston (CSFB) with the rest of its banking business. It also plans to float its Winterthur insurance unit, which was identified as non-core in July, via an initial public offering (IPO).
Credit Suisse wants to grow CSFB, after a slide in industry rankings saw it fall out of the Wall Street top five.
CSFB has said up to 300 jobs at the unit are likely to be cut.
Credit Suisse has set ambitious earnings targets for 2007.The move comes after a difficult period for Switzerland's number two bank, which was forced to slash jobs in 2003 after announcing a record loss the previous year.
The parent company has had to set aside hundreds of millions of dollars to shore CSFB up against a tide of legal troubles.
'Unified trading group'
Now the integrated outfit is to strengthen CSFB in selected business areas "by creating a more focused franchise".
It has earmarked areas such as leveraged finance, mergers and acquisitions, initial public offerings, derivatives, and mortgage securitisation.
Credit Suisse plans to create a "unified global proprietary trading group" at CSFB's institutional securities arm.
The firm said it intends eventually to bring all brands under the Credit Suisse name.
Meanwhile, its insurance unit Winterthur, previously a problem area for the bank and which Credit Suisse bought in 1997 for $10bn, would be floated after failing to attract an "adequate" price from potential bidders.
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