WASHINGTON Credit Suisse First Boston said the investment banking division of a U.S. affiliate generated a $316 million pretax loss during this years second quarter.
The investment banking loss stemmed from a slowdown in key U.S. businesses for CS First Boston, including advising on mergers and underwriting initial public offerings, according to a quarterly report filed with the Securities and Exchange Commission. Other U.S. operations, such as its fixed-income unit, produced a net profit on a combined basis.
While not reflecting overall performance of CS First Boston, a global securities firm, the loss may be a symptom of problems at the U.S. investment banking division. As stock sales dropped, especially IPOs, the U.S. affiliate carried higher compensation costs in the second quarter and contended with a federal probe of IPO share allocations.
The quarterly report was filed by Credit Suisse First Boston USA Inc., and identified in regulatory reports as a combination of the former Donaldson, Lufkin & Jenrette Inc. and Credit Suisse Groups primary broker-dealer subsidiary in the United States.
The relevance of these figures will become clearer next week, when CS First Boston, along with its parent, Credit Suisse Group, reports second-quarter results from around the world.