Credit Suisse Investment Banking
|Credit Suisse Investment Banking|
|Key People||CEO Paul Calello|
|Employees||20,600 (Dec. 31, 2007)|
|Products||brokerage, investmenting and financing|
Credit Suisse Investment Banking (CSIB) is the arm of Credit Suisse Group (CSG) that absorbed the scandal-ridden brand of Credit Suisse First Boston (CSFB) in 2006 following a streamlining of the group's operations.
Less than a year after Credit Suisse Group merged CSFB into CSIB in 2006, new CEO Oswald J. Grubel retired and was immediately replaced by CSIB CEO, Brady W. Dougan. At the same time CSG announced that 17-year Credit Suisse veteran Paul Calello had been promoted to succeed Dougan as CSIB's CEO.
Calello offically replaced Dougan at the head of CSIB in May 2007, leaving his previous job as CEO of Credit Suisse Asia Pacific. Calello first joined Credit Suisse in 1990 to work for the financial derivatives subsidiary of CSFB, now part of CSIB.
In April 2008 CSG announced it would cut 500 jobs in "investment banking and administration" after cutting a further 500 investment banking positions in January. Investment-banking performance had been feared as a major factor behind CSG's poor recent financial results, although U.S.-based competitors like Bank of America and Citigroup have performed little or no better.
Several days later, however, those fears were realized. CSG revealed April 24 that CSIB had lost CHF3.5 billion in the first quarter of 2008 compared to the loss for CSG overall of CHF2.15 billion. CSIB also wrote down CHF5.28 billion worth of assets, almost all the group's total writedowns of about CHF5.4 billion.
- Press Release. Credit Suisse.
- Paul Calello. Credit Suisse.
- Credit Suisse Cutting 500 Jobs as Client Demand Wanes. Bloomberg.
- Credit Suisse writes off $5.3 billion. International Herald Tribune.