Credit Suisse Group AG (SWX: CSGN) is considering the idea of bringing back its United States investment banking brand First Boston, according to a Bloomberg report.
The report, which cites information from people who asked not to be identified as the matter hasn’t been publicly announced, said that the Swiss lender could pursue renaming with the First Boston brand, which was retired 17 years ago.Â
There has been some speculation that the Swiss lender could eventually spin off or separate its troubled investment banking unit. A rebranding of First Boston would support this speculation.
“We have said we will update on progress on our comprehensive strategy review when we announce our third quarter earnings,” a representative for Credit Suisse said in a statement. “It would be premature to comment on any potential outcomes before then.”
Group CEO Ulrich Körner, who was appointed towards the end of July after the lender reported a disappointing second quarter performance, is set to present the new strategic direction next month. The new direction aims to help Credit Suisse pivot from a chain of scandals and losses that have dragged down the Swiss lender’s stock value and reputation.
The Swiss firm’s shares, which have been down almost 60% in the last 18 months, dropped to a record low earlier in September.
First Boston was founded in 1932 as the investment bank of First National Bank of Boston. It was acquired by the Swiss firm in 1990. Credit Suisse called its investment bank division Credit Suisse First Boston from then until 2005 when it decided to use one name for all its divisions.
Credit Suisse last traded at 5.01 Swiss francs on the SWX.
Information for this briefing was found via Bloomberg, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
