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Mix-Ansicht- CSFB to exit precious metals trade - Pancho, 13.10.2001, 00:02
CSFB to exit precious metals trade
Last Updated: 12 October, 2001 11:21 BST
By Kate Haywood
LONDON (Reuters) - Swiss investment bank Credit Suisse First Boston, in a drive to slash costs after a hefty third quarter loss, says it will close its London, New York and Sydney precious metals operations.
CSFB said on Friday it would withdraw from the benchmark twice-daily London gold fix, stop making markets in precious metals and derivatives and shut down its clearing and storage business as it pressed to cut $1 billion (690 million pounds) in costs by the end of next year.
CSFB, a unit of Switzerland's second-largest bank, Credit Suisse Group, surprised the market earlier this week by announcing 2,000 job cuts after a third-quarter loss of 300 million Swiss francs (125 million pounds) amid writedowns on its insurance holdings and airlines exposure.
"Job losses resulting from the closing of these (precious metals) businesses were included in the headcount reduction figures announced by CSFB earlier this week," CSFB said in a brief statement.
CSFB took up a London fixing seat -- one of just five -- in June of last year, saying this reflected its commitment to the global gold market. The others are held by Deutsche Bank, HSBC, Scotia Mocatta and NM Rothschild, which has chaired the fix since it began 80 years ago.
NM Rothschild and ScotiaMocatta both announced job cuts in their base metals operations this week.
The bullion move followed job cuts this week at its Hong Kong investment bank office.
CSFB said it would satisfy its existing long-term hedge contracts with gold and silver producers. It said it has no net hedge or market position at the moment.
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