How it started
Main Article First Boston
In 1978, Credit Suisse and First Boston Corporation formed a London-based 50-50 investment banking joint venture called Financière Crédit Suisse-First Boston. This joint venture later became the operating name of Credit Suisse's investment banking operations.
Transition to CS First Boston (1988–1996)
Credit Suisse acquired a 44.5 percent stake in First Boston in 1988. The investment bank acquired its shares held by the public and the company was taken private. In 1989, the junk bond market collapsed, leaving First Boston unable to redeem hundreds of millions it had lent for the leveraged buyout of Ohio Mattress Company, maker of Sealy mattresses, a deal that became known as "the burning bed". Credit Suisse bailed them out and acquired a controlling stake in 1990. Although such an arrangement was arguably illegal under the Glass–Steagall Act, the Federal Reserve, the U.S. bank regulator, concluded that the integrity of the financial markets was better served by avoiding bankruptcy, even though it meant a de facto merger of a commercial bank with an investment bank.
CS First Boston (1996–2006)
In the mid-1990s, Credit Suisse became Credit Suisse First Boston (commonly referred to as CSFB or CS First Boston) expanding beyond the London franchise.
From Wikipedia’s article on Credit Suisse First Boston, shared under CC BY-SA 4.0.2