Switzerland's most troubled lender is reportedly trying to find external funds to finance the spinoff of its advisory and investment banking business.
Credit Suisse is trying to find an external investor for a spinoff of its investment banking business including the advisory and dealmaking teams alongside the leveraged finance unit, according to a «Bloomberg» report citing unnamed sources. The bank aims for the outside investor to take a partial stake to provide capital and help fund the cost of hiring and retaining talent.
If successful, the restructuring would effectively break up the investment banking division into three units with the bank retaining its trading arm and offloading its securitized products group and other assets.
Heavily Involved
In addition, talks about using the First Boston name for the spun-out businesses are also advancing. US dealmaker and board member Michael Klein has been «heavily involved» in pushing for the brand’s revival.
This marks the latest development for the troubled Swiss lender which is weeks away from unveiling a much-anticipated strategic review that is expected to include asset sales and market exits. Most recently, balance sheet health at Credit Suisse was spotlighted after its credit default swap spiked as high as 355 basis points earlier this week.
