To re-establish market position, Credit Suisse First Boston could possibly go after former senior level employees - namely Joseph Donovan, managing director at Prudential Securities, and Nelson Soares of Lehman Brothers - said one source familiar with the situation.
When contacted, a CSFB spokesman said, "We are taking the necessary steps to maintain our market position. We are fully committed to this business."
Though unconfirmed, a marktet source said that officials at CSFB have already approached Donovan.
"This makes all the sense in the world, because the only way they're going to get back any level of credibility is if they hire back somebody that worked at First Boston at a very senior level, and I think those two individuals are the obvious choices," the source said.
"Donovan is running a fairly successful group at Prudential," the source continued. "But it's doing the more esoteric stuff that Pru does, and it's not doing large term deals, and obviously Donovan knows that business extremely well and has the respect of clients on that side, and he would fill a huge void, especially on the auto sector."
Nelson, on the other hand, could add value to the credit card business, the source said.
According to the latest rumblings, as many as 30 former CSFB employees, all a part of the asset-backed team, moved over to Deutsche Bank Alex. Brown over the last two weeks.
Deutsche would only release the names of the senior staff, which includes, Jorge Calderon, Philip Weingord, both managing directors and co-heads of North American asset securitization. Other managing directors include: Fred Brettschneider, Nita Cherry, Michael Commaroto, Richard D'Albert, Fiachra O'Driscoll, Michael Raynes, David Shrenzel.
Chris Baudet, Eric Falk, Brian Wiele, were hired on as directors.