Credit Suisse is shutting down its managed lending business, which provides third-party agency securities lending services to large institutional investors, spokeswoman Nicole Sharp said.
The business will be wound down by June 30. Clients are being notified, she said.
Ms. Sharp could not say how much in assets was run in the unit or how much revenue was earned from the business. Credit Suisse's prime brokerage securities lending business, whose clients are hedge funds, other money managers and high-net-worth clients, is not affected by the move.
“Managed lending is a very small part of our business,” Ms. Sharp said. “The niche focus doesn't fit with other aspects of our business going forward.”
“CalSTRS has learned about the move by Credit Suisse,” said an e-mailed statement from Ricardo Duran, CalSTRS spokesman. “We just recently announced intents to award contracts to two firms (eSecLending and Citibank) for this service and are currently finalizing contracts with them. We hope to have them in place by the time Credit Suisse pulls out. If not, we will parcel out their business across two current firms, State Street and Goldman Sachs.”
William Atwood, ISBI executive director, said in an e-mail that he would not comment.
Credit Suisse has exited other asset servicing businesses, selling its hedge fund administration business last summer to BNP Paribas Securities Services and closing its transition management business in early 2013.