Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 8 pages
Data source: Published sources
Topics:
Credit Suisse First Boston; Credit Suisse Group; John Mack; Allen Wheat; Frank Quattrone; IPO allocation; Investment banking; Russian default; National Association of Securities Dealers; Securities Exchange Commission; Donaldson Lufkin and Jenrette; Turnaround; Cost cutting; Technology bankers; Hot IPO shares
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Abstract
Credit Suisse First Boston (CSFB) was a leading global investment bank extending a range of services to customers across the globe. When Allen Wheat was CEO, CSFB was under criminal investigations for certain Initial Public Offering allocations it made between April 1999 and June 2000. It was also under scrutiny by stock market regulators in several countries including Sweden, Japan and India. In 1999, when Russia defaulted on its debt, CSFB''s business was severely affected by its Russian market exposure. The company was overburdened with huge pay packages and guaranteed fixed cash compensations promised to its executives. Amidst these troubles, in July 2001 John Mack joined as CEO of the company. He was given the arduous task of putting the company back on track. With Mack''s continuous efforts, the firm started showing signs of revival. The group had strengthened its performance over the first six months of 2003 and expects to achieve continued sound profitability in 2003. Under Mack''s leadership, the company continues to build its position as a top-tier investment bank placing high priority on cost control and quality of service.
About
Abstract
Credit Suisse First Boston (CSFB) was a leading global investment bank extending a range of services to customers across the globe. When Allen Wheat was CEO, CSFB was under criminal investigations for certain Initial Public Offering allocations it made between April 1999 and June 2000. It was also under scrutiny by stock market regulators in several countries including Sweden, Japan and India. In 1999, when Russia defaulted on its debt, CSFB''s business was severely affected by its Russian market exposure. The company was overburdened with huge pay packages and guaranteed fixed cash compensations promised to its executives. Amidst these troubles, in July 2001 John Mack joined as CEO of the company. He was given the arduous task of putting the company back on track. With Mack''s continuous efforts, the firm started showing signs of revival. The group had strengthened its performance over the first six months of 2003 and expects to achieve continued sound profitability in 2003. Under Mack''s leadership, the company continues to build its position as a top-tier investment bank placing high priority on cost control and quality of service.