No. of Recommendations: 12
Before Credit Suisse collapsed, it was working on a complicated and hilariously conflicted deal to spin out its investment banking business into a separate company. The gist of the deal was that Credit Suisse would acquire Michael Klein's boutique investment bank, M. Klein & Co., for $175 million, combine that boutique with its existing investment bank, and then carve out the whole thing into a new investment bank that would be separate from Credit Suisse, though they would have a 'preferred long-term partnership.' The new bank would be called CS First Boston, and it would be run by Klein, who would have a large ownership stake. Klein was on Credit Suisse's board of directors when it came up with this plan. Also he led the committee that came up with this plan. Also he stepped down from the board so that he could get paid a $10 million fee for advising Credit Suisse on executing this plan.
https://www.bloomberg.com/opinion/articles/2023-03...I would gladly keep the 'unqualified' Buffett progeny on the BOD than the likes of Michael Klein. I am sure he would find many ways to release the value trapped in the Berkshire conglomerate for a small consulting fee.
