Credit Suisse First Boston
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| Credit Suisse First Boston (CSFB) | |
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| Founded | 1988 - rebranded 2006 |
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| Key People | Credit Suisse Group CEO Brady W. Dougan was CSFB's last CEO |
| Website | www.csfb.com |
Credit Suisse First Boston (CSFB) was a high-flying tech-boom brokerage and financer in the late 1990s that was brought low some years later by a federal investigation into its initial public offering (IPO) practices. The CSFB business was eventually folded into Credit Suisse Investment Banking (CSIB) and its brand retired in 2006.
History[edit]
CSFB had its roots in a co-operation agreement between Zurich-based retail bank Credit Suisse and Boston-based securities broker First Boston Corporation forged in 1978.[1] CS gained a controlling stake in FB a decade later and renamed the new brokerage Credit Suisse FB. CSFB prospered during the 1990s Internet boom and in mid-2000 paid a staggering $11.5 billion for rival brokerage Donaldson Lufkin & Jenrette (DLJ), pricing DLJ shares at three times book value.[2]
CSFB's problems began soon after, in early 2001, when lead technology banker Frank Quattrone became the subject of a federal investigation into the way CSFB allocated IPO shares.[3] In January 2002 CSFB settled with the U.S. Securities and Exchange Commission (SEC) for $100 million over complaints brought by the SEC stemming from the probe,[4] and ended further SEC probes in 2003 at a cost of another $200 million.
References[edit]
- ↑ Credit Suisse Group. Workazoo.com.
- ↑ This date in deal history: CSFB buys DLJ. TheDeal.com.
- ↑ Credit Suisse First Boston Company Profile. LawyerShop.com.
- ↑ SEC sues CSFB for IPO violations; CSFB will pay $100 million. Securities & Exchange Commission.