Saudi crown prince may invest $500 million in new investment bank Credit Suisse
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Saudi Crown Prince Mohammed bin Salman is considering investing about $500 million in a new unit of Credit Suisse, reports The Wall Street Journal.
Previously reportedthat the Swiss bank intends to spin off its consulting and investment businesses into separate companies. At the same time, first of all, the CEO of Credit Suisse, Ulrich Kerner, intends to isolate the investment banking division, which has been associated with a series of scandals in recent years and which suffers huge losses. To do this, the company is going to revive the First Boston brand, a New York investment bank that existed for almost 60 years until it was acquired in 1990 by Credit Suisse. His mention disappeared from the name of the Swiss bank’s US business in 2006.
According to WSJ sources, the Saudi prince may become one of the largest shareholders of CS First Boston. Together with him, a number of American investors are ready to invest in the investment bank, including Atlas Merchant Capital. Credit Suisse previously said it had raised $500 million from an unnamed investor, but sources say it’s not about Mohammed bin Salman. The Swiss bank has not yet received an official offer from Saudi investors, newspaper sources say. In addition, it is not yet known whether the prince intends to invest funds through Saudi National Bank, which will be Credit Suisse’s largest investor, or through the State Investment Fund, chaired by Mr. bin Salman.
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