Credit Suisse First Boston is to sell its online trading platform CSFBdirect to Bank Montreal for $520 million.This content was published on November 28, 2001 - 15:39
The deal is a further step in the investment bank's attempts to cut costs after recently posting a third quarter loss of almost $400 million.
Under the terms of the deal, the Bank of Montreal is to absorb CSFBdirect into its own online unit. CSFB's headquarters are to remain in Jersey City, New Jersey.
CSFBdirect handled around 29,000 online transactions in September, down from a high point of 50,000 in March 2000.
Analysts say the platform's task of handling small and medium-sized fortunes no longer plays an important part in CSFB's strategy. Under the leadership of John Mack, it now wants to concentrate on institutional investors and other wealthy clients.
swissinfo with agencies.
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