Wall Street veteran Michael Klein is the latest casualty of the banking crisis
- Michael Klein was tapped last year as CEO of CS First Boston, Credit Suisse’s investment banking spinoff.
- But the deal was scrapped following Credit Suisse’s fire sale to UBS.
- Here’s what the axing of the deal means for Klein and Credit Suisse’s investment bankers.
There’s a new casualty of the banking crisis: Wall Street deals veteran Michael Klein.
Credit Suisse has terminated its deal to buy Klein’s boutique bank, officially ending plans to spin off its own investment bank into the US-based CS First Boston. Credit Suisse and Klein “have mutually agreed to terminate the acquisition of The Klein Group,” the company said in its first-quarter earnings announcement.
News of the termination comes roughly a month after Credit Suisse’s fire sale to UBS amid a banking crisis that felled two US regional banks last month: Silicon Valley Bank and Signature Bank.
It marks the latest blow for Credit Suisse’s investment bankers. CS First Boston was the result of a restructuring plan announced last year to revive the investment bank following a series of scandals that led to a talent exodus. UBS has said it’s eager to acquire Credit Suisse’s wealth management business, but sees little upside in its markets operations, and very little interest in its investment banking division beyond specific teams, like US tech.
This has resulted in even more talented Credit Suisse bankers looking for new work.
Klein was the Credit Suisse board member at the center of the turnaround plan who stood to make millions, including through a planned IPO of CS First Boston slated for as soon as 2025.
