CSFB to cut 760 jobs

Credit Suisse First Boston to cut 20% of global investment banking unit

October 3, 2001: 2:20 p.m. ET

NEW YORK (CNNfn) - Credit Suisse First Boston plans to cut 20 percent of its global investment banking unit, about 760 jobs, a company source confirmed Wednesday.

A company spokeswoman said CSFB has made no internal or external announcement regarding job cuts.

In July, the investment bank ousted CEO Allen Wheat and named John Mack as his replacement, a move many viewed as a result of an investigation regarding the company's initial public offering allocations.

The federal probe alleges the bank requires big investors to pony up large commissions in exchange for access to initial public offerings (IPOs).

Mack, nicknamed "Mack the Knife," was the former CEO of Morgan Stanley.

On Friday, Reuters news service reported that Morgan Stanley (MWD: up $2.61 to $49.66, Research, Estimates) is set to implement another round of job cuts that would include investment bankers, according to a source familiar with the situation.

The job cuts would come as the financial services sector is grappling with one of its worst downturns in recent years, made worse by the Sept. 11 attacks which destroyed the World Trade Center in New York, damaged the Pentagon outside of Washington, D.C., and closed U.S. stock markets for four days.

Morgan Stanley said the company does not comment on rumors.

-- PHO (owennos@bigfoot.com), October 03, 2001