: Credit Suisse bringing back ‘First Boston’ name as it plans up to 9,000 job cuts

by | Oct 27, 2022 | Stock Market

Credit Suisse is bringing back the “First Boston” name after 17 years as the Swiss bank unveiled a sweeping restructuring that includes a big investment from Saudi Arabia, the sale of a unit, and as many as 9,000 job cuts. The revamp was unveiled Thursday alongside a third-quarter loss of 4 billion francs ($4.1 billion), the fourth consecutive loss for the struggling bank that has reeled from the blowup of the Archegos family office and the collapse of the financing firm Greensill Capital.

Credit Suisse
CSGN,
-11.32%

CS,
-1.03%
shares tumbled 15%, extending its year-to-date decline to 54%. Most of the loss stems from a 3.7 billion franc impairment of deferred tax assets, but it would’ve lost money even without that, as revenue dropped 30% to 3.8 billion francs, on a 58% slide in investment bank revenue in dollar terms, a 18% wealth management decline and a 9% drop from its Swiss bank. CEO Ulrich Körner said on a conference call with analysts that the unsubstantiated social media speculation the bank was about to go bankrupt at the beginning of the month “did lead to outflows across our franchise,” though he didn’t quantify the figure. In the earnings release, Credit Suisse said the out …

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