ZURICH: Saudi Crown Prince Mohammed bin Salman is considering investing around $500 million in a new Credit Suisse investment bank spin-off, CS First Boston, according to The Wall Street Journal.

Citing unnamed sources familiar with the matter, the US financial newspaper listed several potential investors in the new unit.

In addition to the Saudi crown prince, the potential investors include Atlas Merchant Capital, a private-equity firm run by British banking giant Barclays’ former chief Bob Diamond, which was also considering pumping $500 million into the unit, according to the sources quoted by WSJ.

Credit Suisse itself has previously said it had $500 million committed from an unnamed investor, and its chairman said last week that it has other firm commitments, the daily reported on Sunday.

The bank has yet to receive a formal proposal from the Saudi entity, WSJ’s sources said.

Credit Suisse unveiled a dramatic restructuring plan at the end of October, focused on radically transforming its investment banking unit, at the heart of a string of scandals.

Among the changes, it decided to revive its First Boston brand, named after a US investment bank it absorbed in 1990, where its capital market and advisory activities will be brought together.

Published in Dawn, December 6th, 2022