CSFB's Japan ABS Business is Unscathed
August 9, 1999
Credit Suisse First Boston's securitization business in Japan is unaffected by recent sanctions meted out by the Financial Supervisory Agency (FSA). The clarification follows stories in the Japanese media reporting that Japan's securities watchdog had ordered CSFB's banking operation to suspend its loan securitization business for one year (ASRI, 7/26/99, p7).
Five units of the Credit Suisse group were hit with sanctions by the FSA, but the firm's asset finance team and conduit business are not directly effected, as the asset finance group, which falls under CSFB Securities, continues to do business in Japan.
The FSA's sanctions conclude a six-month inquiry into Credit Suisse and marks the first revocation for disciplinary reasons of a banking license in postwar Japan. The inquiry stemmed from the FSA's charge that the firm marketed derivatives-based products to help Japanese clients hide their losses. Credit Suisse, which reportedly plans to overhaul its Tokyo office, said that it will comply with the sanctions.