Credit Suisse's newly created investment bank lays out plans in memo - ZAWYA

NEW YORK - Credit Suisse Group's recently created concern bank, CS First Boston, volition counsel connected mergers and acquisitions, rise superior for clients done equity and indebtedness markets, and supply leveraged concern arsenic portion of its halfway offerings, according to an interior memo seen by Reuters.

"CS First Boston volition beryllium planetary with a beingness successful each regions wherever it has a competitory advantage," David Miller, planetary caput of CS First Boston, wrote successful a memo to staff.

The portion volition beryllium carved retired of the Swiss lender.

"Over time, CS First Boston’s operation volition germinate to go an autarkic standalone concern bank, enabling it to pull 3rd enactment superior and see worker ownership," Miller wrote. The determination to go "an M&A boutique with superior markets expertise" volition commencement immediately, helium wrote.

The Swiss concern banking and superior markets concern volition beryllium moved to the company's Swiss Bank to connection services successful its location market, according to the memo.

Credit Suisse announced connected Thursday it would rise 4 cardinal Swiss francs ($4 billion) from investors, chopped thousands of jobs and displacement its absorption from concern banking toward affluent clients arsenic the slope attempts to enactment years of scandals down it, sending its shares sliding.

The company's program to standard backmost its concern slope and reallocate superior to its planetary wealthiness absorption concern volition impact important execution risk, according to Fitch Ratings.

However, if the restructuring is successful, it could marque Credit Suisse's net little volatile, Fitch said. The slope has traditionally allocated a bigger stock of superior to concern banking than its planetary peers, according to the ratings agency.

Ken Hao, president and managing spouse of backstage equity steadfast Silver Lake, said it looks guardant to moving with CS First Boston.

"We person worked with the squad astatine CS First Boston for galore years, and they person provided innovative financing solutions for Silver Lake portfolio companies specified arsenic Dell, Alibaba and Broadcom," helium told Reuters via email.

CS First Boston volition support beardown ties to Credit Suisse Group, according to the memo. The portion volition enactment with the Swiss bank's markets business, peculiarly successful currency equities, equity derivatives and securities research, it said.

It volition besides enactment intimately with Credit Suisse's wealthiness absorption concern to connection share-backed lending and structured recognition to clients successful Asia.

(Reporting by Saeed Azhar successful New York Editing by Lananh Nguyen and Matthew Lewis)