CSFB names new chairman

January 31, 2002 Posted: 2046 GMT

NEW YORK (CNN/Money) -- Credit Suisse First Boston said Thursday it has named Stephen R. Volk as chairman, succeeding Joe L. Roby, who became the firm's Chairman Emeritus and Senior Advisor at the end of December.

The firm said that Volk, who joined CSFB as vice chairman in July, will work with John Mack, CEO, on day-to-day strategic management of the firm and focus on client service.

Before joining CSFB, Volk was managing partner for 10 years at Shearman & Sterling, a law firm he joined in 1960.

CSFB hired John Mack as CEO in 2001 to help drive down its operating costs, which are the highest in the industry. Mack, who has been nicknamed "Mack the Knife"  because his cost-cutting measures are legendary, has said he plans to reduce operating costs by $1 billion by the end of 2002.

Earlier Thursday, CSFB's parent and Switzerland's second-largest bank said it expects a loss of 800 million Swiss francs ($468 million) for the last three months of 2001. Its investment banking unit Credit Suisse First Boston (CSFB) will post a net loss of about $1 billion, reflecting restructuring charges, losses in Argentina and exposure to bankrupt U.S. energy-trading concern Enron.

CSFB also settled a case brought by the U.S. Securities and Exchange Commission and the National Association of Securities Dealers for mishandling new stock offerings. The company paid $100 million to close the matter.

CSFB's biggest single cost was $745 million to pay for the cost of shedding 2,500 employees. Other costs included $213 million for Argentina and $126 million for Enron.

"We made important progress at CSFB during 2001, bringing costs more in line with the market and our competitors, resolving outstanding regulatory matters and making our firm more competitive," said Mack said.