Wall Street's New Revenue Stream: Charge To Speak To Research Analysts

Want to speak to a Credit Suisse stock analyst? Make sure you have your credit card handy (WSJ):

Credit Suisse will start charging some new clients to speak to their stock analysts, in the latest effort by a Wall Street firm to squeeze more value out of its stock-research division.

The new wrinkle is part of an agreement the firm, a unit of Credit Suisse Group AG, signed with independent research company Gerson Lehrman Group in which the two firms will share information and some clients.

Gerson Lehrman will open part of its electronic network of 200,000 consultants from various companies and industries to speak with Credit Suisse stock-research analysts, who will use the discussions to try to enhance the depth and accuracy of their research. In return, Gerson Lehrman will gather subscription fees and get access to about 300 Credit Suisse analysts for its own noninvestor clients, which include lawyers, consultants and scientific researchers.

We doubt this new revenue stream will make up for reduced M&A and IPO activity or trading losses, but it might save a few jobs. Credit Suisse, which has a global research staff of over 700, is actually adding new analysts while most other Wall Street firms are cutting back.

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