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Credit Suisse sale could hit home for Research Triangle Park

Credit Suisse, a major tenant in Research Triangle Park, was acquired by fellow Swiss bank UBS on Sunday in a $3 billion deal that’s reverberated across the international banking system.

The news also seems poised to impact the Triangle, where Credit Suisse is among the area’s largest employers.

Following the collapse of Silicon Valley Bank earlier this month, scrutiny over the long-term viability of Credit Suisse had intensified as depositors withdrew billions from the bank. Last week, the Swiss government loaned Credit Suisse more than $50 billion to bolster its liquidity, but the government encouraged that the beleaguered bank be sold to restore confidence in the nation’s banking system.

In 2004, North Carolina awarded Credit Suisse (then called Credit Suisse First Boston) a grant to bring 400 jobs to Research Triangle Park (RTP). Many of the positions were focused on technology. Two years later, the state gave Credit Suisse a second incentives package to create hundreds more positions in the area.

Then in 2017, the bank entered a grant agreement to add 1,200 jobs and invest $100 million in its Morrisville campus. State records indicate roughly two-thirds of those jobs have already been created, bringing the company’s Triangle headcount to around 2,300 people as of last year.

In 2019, Credit Suisse opened a new office in RTP to accommodate its growth. The company was partly responsible for pressuring politicians to reverse North Carolina’s House Bill 2, which drew national controversy as the “bathroom bill,” by holding off on its expansion plans until the legislation was reversed.

“Ever since establishing a tech center here in the Triangle nearly 20 years ago, Credit Suisse has been an engaged member of the business community,” said Brooks Raiford, CEO of the North Carolina Technology Association.

Layoffs in process

In recent years, Credit Suisse has experienced a rash of scandals, including receiving major fines for enabling clients to evade taxes. Known for catering to wealthy, international clients, the bank was reporting heavy losses even before Silicon Valley Bank fell on March 10, sparking concerns of a broader banking crisis.

Credit Suisse was already in the process of eliminating around 9,000 positions globally due to internal restructuring. It remains unclear if and how those layoffs would hit the Triangle, or what this weekend’s seismic acquisition will mean for local employees. As analysts work though the implications of this megamerger, UBS Chairman Colm Kelleher told reporters Sunday that the investment division of Credit Suisse will be downsized.

The bank declined to answer questions from The News & Observer regarding its further plans in the Triangle. A spokesperson told The N&O that any immediate predictions would be speculation, but that “we are continuing to operate normally for the time being. Nothing really changes at this point.”

Roughly half of the company’s area workforce are technologists, with other positions encompassing finance and corporate functions.

The North Carolina Department of Commerce said the state’s 2017 job development investment grant (JDIG) agreement with Credit Suisse remains active as UBS takes over. As of last year, 794 of the company’s 1,200 promised positions from the grant had been filled, according to state records.

“It’s somewhat common for a JDIG to transfer seamlessly to an acquiring company in situations such as this one,” said department spokesperson David Rhoades. “We’d refer you to the company for insights into its future plans.”

This story was produced with financial support from a coalition of partners led by Innovate Raleigh as part of an independent journalism fellowship program. The N&O maintains full editorial control of the work.

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