Saudi Crown Prince to invest in Credit Suisse

Saudi Arabia's Crown Prince Mohammed bin Salman is preparing to invest in Credit Suisse Group's investment bank, the Wall Street Journal reported.

The Crown Prince may invest around US$500 million (HK$3.9 billion) in the lender's CS First Boston spinout, the newspaper said.

Other investors could include former Barclays chief executive Bob Diamond's Atlas Merchant Capital.

Credit Suisse Chairman Axel Lehmann said last week that the bank has received several further commitments from investors for its planned spinout.

The prince has been encouraging Saudi Arabia's largest firms to expand globally, raise the country's profile as a serious investor and diversify its economy. The kingdom is already backing Credit Suisse, with Saudi National Bank taking a 9.9 percent stake in the troubled Swiss lender.

The Swiss bank's history with First Boston dates back to 1978 when the pair linked up to operate in the London bond market.

They later merged to create CS First Boston, but a tough period followed after famed bankers departed and the firm ran into regulatory troubles.

Some bankers and investors have expressed skepticism over its ability to regain its past glory in a shrinking market.