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Smaller deal, smaller loss
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October 5, 1998: 1:50 a.m. ET
CS First Boston did a Long-Term Capital transaction similar to USB's
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NEW YORK (CNNfn) - CS First Boston did a derivatives deal with the Long-Term Capital Management hedge fund that was identical in structure to the one that cost rival UBS a $682 million loss plus the jobs of four executives, including Chairman Mathis Cabiallavetta, the Financial Times reported on Monday.
The key difference was the size of the transaction, the newspaper reported. While UBS made an $800 million investment, CS First Boston drew the line at $100 million, the report said.
The deal was the reason for a $55 million "revenue reduction" that parent Credit Suisse Group announced, but did not explain, on Sept. 25, the report said.
One of the main reasons that the Credit Suisse subsidiary limited its investment in Long-Term Capital was the "black box" nature of the hedge fund, which reported its net asset value only once a month, the newspaper reported. 
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CS First Boston
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