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					CSFB Product Control Process Reengineering RFP




Proposal
March 4th, 2005
                                                                                                                         25 Broadway
                                                                                                                         New York, NY 10004
                                                                                                                         212 618 4000



March 4, 2005
                                                                                                                                                                                CONFIDENTIAL
Ms. XYZ

New York,


Dear Ms xyzy:

Thank you for the opportunity to propose on CSFB’s Product Control Process Reengineering RFP. The attached document outlines our understanding of
the project requirements and our approach, as well as the project team resources and professional arrangements. We understand the importance of this
initiative to CSFB through our work with ISIS and other functions, and believe that Deloitte is uniquely qualified to assist.

We look forward to discussing our response with you further and to working with you on this critical initiative. If you have any questions or would like to
discuss this proposal further please do not hesitate to contact the undersigned. We would welcome an opportunity to arrange for a meeting with
members of the proposed team upon your request.

The undersigned, being persons duly authorized to represent the Supplier, states that this Request for Proposal has been read and understood, and that the Supplier agrees to be bound by the terms
and conditions contained within this RFP and proposal.

The individuals whose signatures follow represent and certify that they have the authority to represent and act on the behalf of Deloitte Consulting LLP, 25 Broadway, New York, NY 10004
“Company”. They recognize for themselves and for Company that the information contained therein the RFP, including Appendices, is CONFIDENTIAL and was released to Company to enable a
response to the RFP. Company shall not disclose such RFP information – or the fact that Company has been asked to submit a proposal – to a third party for any reason. Without limiting the
foregoing, Company is not authorized, without CSFB’s prior written consent, to publicize the fact that they are a potential Supplier to CSFB for PC Business Process Reengineering. The individuals
recognize for themselves and for Company that at the request of CSFB, the RFP and any copies thereof, either hard copy or electronic copy, shall immediately be returned to CSFB. The individual
also represents and certifies that the Proposal, including cost structures, was developed independently and with no collaboration of any other provider of firms and with no purpose of restricting
competition. The RFP to which this Proposal relates has been read and its requested terms, except as indicated herein this Proposal, will be accepted should Deloitte Consulting LLP be selected as
the provider of such Services to Credit Suisse First Boston LLC. Company certifies that such Proposal shall remain in effect for 90 days from Proposal due date.


Kindest regards,




Adam Broun             Ken Landis
Principal              Principal
CSFB has initiated an assessment to identify opportunities to maximize the operational efficiency of the Product Control area.
This initiative is critical to achieve cost and resource efficiencies, increase capacity and manage risk more effectively for the firm.


Based on preliminary assessments, it is CSFB‟s opinion that a significant opportunity exists to rationalize Product Control
processes, resulting not only in cost savings from reduced headcount, the simplification of processes, and the retirement of
outdated or redundant applications, but also in “best practice” business processes, which will facilitate new business initiatives,
improve internal client service, and create a more rigorous control environment.

CSFB plans to engage a partner to assist and collaborate on this reengineering assessment. The critical aspects in conducting
the assessment are to determine the current business process flows, document key processes, identify opportunities to
reengineer processes and recommend a migration plan to capture those opportunities. In addition during this phase, the team
will identify minimum levels of acceptable efficiency and control with the aim of providing a potential “menu” of reengineering
alternatives.

This document details Deloitte‟s response to your request for proposal. Our proposed approach and assessment framework
targets your specific needs and incorporates relevant insights from our experience in capital markets, accounting and regulatory
advisory and large scale reengineering efforts:
   Significant experience working with leading investment banks addressing complex business, operational, and technology
    challenges and opportunities
   Recognized advisory and implementation experience as a strategic partner on a number of prominent reengineering efforts
   In-depth product knowledge to accelerate and drive a targeted and realistic assessment aligned with your strategic goals
   Access to relevant industry benchmarks on product and process costs
   Ability to apply best of breed tools and processes (i.e, lean, six sigma, etc)
   Experience in developing innovative solutions that can simultaneously deliver operational efficiency and provide for a
    sustainable growth platform
   Combined expertise in accounting, control, risk and regulatory policies, practices and standards
       Table Of Contents

I.    Executive Summary

II.   Introduction & Marketplace Perspectives

III. Our Approach

IV. “Test Driving” the Approach

V.    Team Structure, Profiles & Fees

VI. Qualifications & References

VII. Available Tools

VIII. Appendices

IX. Required attachments:

          Supplier_Assessment_Questionnaire.doc

          CSFB_Master_Agreement.doc




                                                   -3-
I. Executive Summary
             Executive Summary


 Based on our industry experience and knowledge of CSFB we believe there is an opportunity to reduce the Product Control run
  rate by approximately 5%-12% per annum ($9-$21MM), within the scope defined, by reengineering the primary functions within the
  department. Significant additional savings might be possible with end-to-end changes in the operating and technology model
  across the trade cycle
 To identify and achieve these benefits we will examine and utilize the following levers:
            -   Policy/control adjustments
            -   Redesigning processes
            -   People effectiveness
            -   Organization re-design
            -   Selected system/technology enhancements
 Reengineering can deliver the additional benefits of enhanced control, risk management and the ability to support increased trade
  volumes and new products – a critical consideration for support of CSFB‟s business strategy
 To extend this analysis across all products/functions and develop the business case, implementation roadmap and migration plan
  we propose a twelve week diagnostic with product aligned workstreams
 The diagnostic would be conducted by a dedicated Deloitte team with extensive Product Control and reengineering experience.
  This team would be split between London and New York and supported by a number of product and subject matter specialists with
  deep product accounting experience
 The middle office cost driver and process mapping work conducted within the ISIS transparency initiative would be the starting
  point of our analysis, along with other pre-existing documentation and analysis (e.g., Sarbanes-Oxley process documentation)
 We measure our success on this engagement by CSFB‟s success: in identifying measurable, sustainable 2006 cost savings
  without compromising risk or client service




                                                                  -5-
II. Introduction & Marketplace Perspectives
                      The Product Control Function Faces A Number Of Emerging Environmental
                      Challenges…


                                        Client                                           Control

                        New business models                                    Increased regulatory and
                        Integrated approaches to                                legislative scrutiny
                         client coverage                                        Increased demands on risk
                        Greater complexity of                                   management
                         products


                                                            Execution

                                                     Focus on Smartsourcing
                                                     Move from silo to
                                                      commodity processing




                                       People                                             Cost

                       War for talent                                          Lower margins
                       Rising salaries                                         Street expectations




1   eFinancial News , S. Butcher, 27 Jan 05
2 Balance   Sheet, M Mainelli Vol 12 2004

                                                                 -7-
                  …As Well As Gaps Versus Peers

                                                                                                                                                         ILLUSTRATIVE

            Dimensions                         Industry Observations                                                    Industry Direction
                                                                                              Client Aligned               Matched Integration                     Functional Aligned
Client




              Organization     Product Control is client versus functionally aligned          Possible End State
                                                                                                                                                     ?
               Structure       Works closely with Finance as well as Trading


                               Financial Control is a key function (risk management, G/L     Full Suite                      Middle Office                          Limited Services
                                maintenance & reporting)
               Functions       Product Control includes data integrity, traders‟ P&L and
                                                                                                                                                             ?
Control




                                some Middle Office (counterparty, confirmations)
                                                                                              Dynamic/Forward Looking            Neutral                         Standard Procedures
                               Comprehensive risk management standards
                  Risk         Proprietary, customized tools and techniques                                                                     ?
               Standards       Continually evolving control and measurement processes

                                                                                              Low                                Medium                                         High
                               Minimized cost level
Cost




              Relative Cost    Allows business expansion without increasing risk                                                                        ?
                               Relative peer cost performance graded against MIB analysis

                                                                                              Globally Standardized            Centralized                                   Highly
                               Moving towards global Product Control systems that produce    System                                                                   Customized &
              Technology        P&Ls in a more standardized manner
Execution




                                                                                                                                                         ?              Fragmented
                               Single source/Operating Data Store for all data

                                                                                              Defined/                   Partially Defined/Tracked               Not Defined/Tracked
                               Continuous improvement of the Product Control function
              Performance      Measures performance with KPIs and stringent quality
                                                                                              Tracked
                                                                                                                                    ?
               Measures         measures
People




                                                                                              High %                       Medium % Deployed                          No Deployment
                               Moved to low cost locations where risk levels permit          Deployed
              Deployment       Highest quality personnel in highest value added activities                                                                                      ?




                                                                                        -8-
              Internal Needs To Deliver The Firm‟s Overall Strategy Are Changing


            2002 – 2004 Focus Areas                     2005 Strategy                          Demands On Product Control
              “Staying Out of Trouble &   “Win Where We Choose To Compete By Delivering
                Generating Revenue”                 A More Focused Franchise”

                                                        Profitability /                    Provide lowest cost, scalable support
               Revenue Generation
                                               Focus on High Margin Products               Increase capacity/handle complexity
Client




                      Industry                        Client Alignment/                    Improve internal client alignment
                     Mandates                          Segmentation                        Ensure accuracy of underlying data

                                                                                           Handle additional complexity/volume
              Staying Out of Trouble               Disciplined Risk Taking
Control




                                                                                            without diminishing control

                     Structural                          Continuous                        Focus on continuous process
                     Changes                            Improvement                         improvement to extract efficiency

                                                                                           Prioritize IT/investment spend for
Cost




                       Cost
                                                             ROI
                     Reduction                                                              best return

                                                Improved Execution Through
                                                                                           Provide transparency of costs
Execution




                  Getting It Done                Alignment, Accountability &
                                                     Performance Metrics                   Implement measurable metrics

                                                  Execute Globally – Group
                  Deliver Locally                                                          Identify and support Group synergies
                                                Synergies Through Integration
People




                                               Enhanced Ownership Culture –                Release staff to focus on change
               People Management                                                            management initiatives
                                                   Incentives Alignment




                                                             -9-
Product Control Needs To Change To Deliver The Firm‟s Evolving Strategy
While Simultaneously Supporting Growth And Efficiency Initiatives

Product Control must absorb increased
 volume and additional complexity…


            Supporting Growth
   Higher PC Impact              Lower PC Impact                           Higher PC Impact                 Lower PC Impact

 ABS                          Alignment of Equity                     Capture Derivatives              Cross-CSG Synergies
 Build out Equity Prop         Research/Sector Focus                    Productivity                     Data Centers
  capabilities within cross    Cash Equities                           Establish Integration            Finance Deployment
  divisional prop group         Execution Platform                       Derivatives Structuring
 Build out Prime Services                                                                                GTI Transparency
                               Client Segmentation –                   Finance Control Efficiency       IPO7 & AD07 Efficiency
 Cash Equities – Plan ‟06      Europe                                   Improvement
 CDO                                                                                                      Programs
 CMBS                         Client Segmentation - US                GAD Transparency                 ISIS Singapore Migration
 Commodities Build Out        European Secondary                      ISIS MO & Coverage Model         IT Phase 2 Deployment
 Credit Derivatives            Credit Trading                          ISIS Tactical Efficiency         IT Tactical Cost Reduction
 Desk-based Positioning       Extend Trading                           Capture
 Derivatives – Plan ‟06        Analyst Function                                                          Non-IT Purchasing Spend
                                                                        ISIS Transparency
 Emerging Markets             FID Syndication Desk                                                      Phase 1 Deployment
                                                                        Mortgage Change Program           (ISIS & IT)
 Equity Syndication Desk      Global Top Account
 FID Strategic Book                                                    New Capital Markets
                                Strategy                                 Structure
 GFX
 Growth in Asia, Japan and    Increase integration of FID             Product Control Improvement
  Australia                     Business Lines                          Unified FID/Equity
 High Yield                   Migrate HOLT small-cap                   Proprietary Group
 Insurance Structuring         coverage to sectors                     Vertical Integration of FIG
 Interest Rate Products       Options – Automated
 Rebuild Derivatives           Market Making
  Residential Mortgages
  Vertical Integration
  Strategy
 Tax Structuring

                                                                                      Reducing Cost/
                                                                                   Increasing Efficiency

                                                                            …while reducing cost without
                                                                         compromising risk or degrading control

                                                              - 10 -
                To Address The External & Internal Challenges Facing the Product Control Function,
                CSFB Has Launched A Number Of Initiatives Over The Past Three Years
         The reengineering
initiative must understand
     the implications of the                            Timeframe
       current book of work                                                                                          End State
                                    2002     2003         2004      2005            2006

           Current & Past PC Initiatives (Highlights)
                                                                                            Reengineer processing of repo instruments globally with the
                Repo Reeng.                                                                  goal of providing STP

              Opera for CSFBi                                                               Implement Opera data store for all CSFBi trades and positions

                                                                                            Ensure FAS 133 compliance by developing HAGAR to replace
                  FAS133
                                                                                             existing tactical applications

           Panorama IRP – OTC                                                               Replace current FO P&L and risk management spreadsheets
            Risk Mgmt System                                                                 with a scalable risk management system


             BB Template Flow                                                               Roll out of BB technology to mitigate control and Op risk for
             Credit Derivatives                                                              Flow Credit spreadsheets


           Hydra – OTC Equities                                                             Provide a consistent and validated approach for generating
            Risk Mgmt System                                                                 P&L/Risk measurement within Equities


            FID Europe FOBO &                                                               Rationalize P&L/FOBO system through rollout of FIREPL and
            P&L Rationalization                                                              FIRE to selected areas of FID

                                                                                            Migrate UK Equity business to a new entity providing greater
           Entity 320 Elimination
                                                                                             capital management flexibility

            OTC Trade Capture                                                               Migrate OTC trade population to DTD/DOMAN infrastructure to
             (DOMAN/DTD)                                                                     increase transaction volumes

           New & Forthcoming Initiatives
              Product Control
              Reengineering                                                                 To be determined
                Initiative #1


                     …                                                                      …


                                                                    April 1st , 2005              Solution design and sequencing
                                                                                                  will build on and complement
                                                                                                  these initiatives

                                                                           - 11 -
                      Our Experience Suggests 5%-12% Savings Are Achievable Through Policy, Process
                      And Organizational Improvements That Are Not Dependent On Fundamental
                      Technology Change

                                                                                                                     Potential Initiatives
                      Levers
                                                                  Range of Cost Savings1                                   Lower Bound                                       Upper Bound

                                                   0%                                                   30%       Remove non-Product Control                 Require FO to stop writing
                                                        3%        5%
                 Policy/Control                                                                                    tasks from the Product Control              manual tickets
                  Adjustments                                                    14%         18%                   domain


                                                   0%                                                   30%
                                                     2%           5%
                                                                                                                  Eliminate redundant/duplicate              Automate workflow
                  Redesigning                                                                                      MO functions
                   Processes                                                                                                                                  Straight-Through-Processing
                                                                    9%                 15%
                                                                                                                                                               (STP)

                                                   0%                                                   30%       Improve FTE allocation across              De-layer product support
                                                             5%             9%
                                                                                                                   product groups                              structure
            People Effectiveness
                                                                            12%         16%
                                                                                                                  Increase spans of control                  Deployment


                                                   0%                                                   30%       Re-align core MO functions to              Centralize product support
                Organizational                        3%               7%                                          business architecture                       services
                  Redesign                                                   13%              19%




                                                   0%                                                   30%                                                   Use of Single-Source of data
            System/Technology                       1%       3%
                                                                                                                  Interface development to
                                                                                                                   downstream applications                    Use of operational data store for
              Enhancements                                                               20%             30%                                                   cross-product data


                                                   0% $9MM                  $21MM                       40%       ‘Tactical‟ process and workflow            Technology platform rebuild
                                                             5%              12%
                Indicative Total                                                                                   improvements without                        intermixed with wholesale
                                                                                                  25%     40%      significant technological change            reengineering
                                                                                               $44MM     $70MM




                                                                                                                                     Lower Bound – Savings through process, policy and organizational changes
                                                                                                                                     without fundamental system enhancements

                                                                                                                                     Upper Bound – Transformational changes that have wide-reaching
                                                                                                                                     implications for technology and groups external to Product Control

1   Savings are estimated as a percentage of spend (CSFB Global 2005 Budget - $175MM). Savings opportunities are interconnected and overlap, therefore totals are not additive

                                                                                                                 - 12 -
           This Effort Will Improve The Way Business Is Conducted Within Product Control And
           Result In Benefits For Your Key Internal Clients And Partners

                                                                                    Enhanced financial control
                                                                                    Compliance with
                                                                                     regulatory requirements
                                                                                    Improved accuracy of
                                                                                     financial statements


                                                                                                                                       Credit Risk
                                                                                    Product Control,
                                                  Investment                                                   Legal &               Management, HR,
Trading
Trading                     Sales                                   Finance
                                                                      Finance        Operations &
                                                    Banking                                                  Compliance                 Corporate
                                                                                      Technology
                                                                                                                                        Services


                              Improved client                                                                      Strengthened             Accurate risk
                               service/delivery                                          Product                     compliance                exposure
                                                                  Internal Audit
                              Increased transparency in                                 Control
                                                                                                                    Improved data            Improved risk
                               sales commissions and                                                                 quality                   position
                               client revenues                                                                                                 awareness/
                                                                                                          Improved trade information          mgmt of
                                                                    Treasury           Operations         More timely settlement and          enterprise risk
      More precise and timely                  Better balance
                                                                                                           clearing
       risk assessment                           sheet
                                                                                                          Reduced errors and trade
      Accurate product/                         management
                                                                                                           breaks
       business P & L                                                  Tax             Technology
      Enhanced forecasting
                                                                                                                   Operational Data Store
       ability
                                                                                                                   Streamlined MIS
                                                                                                                   Better applications/system
                                                                                       Operational
                                                                                       Risk Mgmt                    reliability
                   Legend                                                                                          Reduced cost/heightened
          Suppliers/Inputs To PC                                                                                    efficiency
          Clients/Users of PC Data & Reports                                                                       Decreased maintenance of
                                                                                                                    multiple applications



   We have worked with many institutions to deliver programs which yield ancillary benefits across the organization,
    as well as identify and manage the risks that come with executing a large-scale transformation of this nature




                                                                         - 13 -
III. Our Approach
                     Stage 1 Disaggregates Your Current Processes, Identifies Inefficiencies
                     And Designs A Customized Solution To Fix The Gaps



                                                                    Go/No Go Decision


                                                        Stage 1                         Stage 2
                                                         Identify                       Implement




                             3-4 weeks                                     5 weeks                                   3 weeks

                            Examine                           ‘Unwind‟ and Assess                               Recommend
                          Build the Baseline                Explore and Validate Opportunities           Build a Roadmap and Prepare for
                                                                                                                  Implementation

                                                                                                     In this phase, we assemble the selected
           The first weeks involve collaborative data    During this period, the broadest set of      opportunities, identify the resources for
            gathering to build on our existing CSFB     possible reengineering opportunities are      implementation and create the detailed
             fact base1 for future decisions and to     examined across all products to test and    plans needed to enable rapid transition to
               enroll a broad set of CSFB team           refine them, and to clearly understand      execution and delivery of savings. This
            members whose assistance and buy-in            the range of options and tradeoffs         period also provides time for additional
               for implementation will be critical             available to Product Control         communication and buy-in both internally
                                                                                                                   and externally




                  Our approach is designed to generate an implementable, fact-based set of tested reengineering opportunities,
                   with the implications and trade-offs for Product Control and other functions clearly understood and discussed


1See   appendix

                                                                             - 15 -
                                                                                                                                                                         Go/No Go Decision
                  Building An Accurate Baseline Is Critical To Locking Down Project                                                                                 Stage 1          Stage 2
                  Scope And Ensuring Credibility Of Analysis

                                                                                                             Examine
                      Week 1                                                       Week 2                                 Week 3                               Week 4

Confirm What‟s „In and Out‟


 Mobilize project team                                                                                                              Strong CSFB team involvement
 Identify and confirm key stakeholders                                                                                              from all in-scope areas will help
 Hold working sessions (PC functional reps) to confirm initial scope of the project, e.g.
 functions/staff to be reviewed
                                                                                                                                     ensure ownership of process and
 Identify “big rules” to guide/filter future opportunities (e.g., 1 person per process for
                                                                                                                                     savings, as well as put any
 commoditized products, „4 eyes‟ principle, dedicated structured products group)                                                     concerns on the table early
Build The Baseline For Comparison

 Update financial data by function (e.g., cost center, product, location)

 Update headcount data (e.g., staff details – grades/location/salaries by function)
                                                                                                                                   Deloitte will leverage existing internal
 Facilitate sessions with key personnel
                                                                                                                                   organizational and CSFB Product Control
 Review organizational charts                                                                                                     financial knowledge to accelerate data
 List of open requisitions by function                                                                                            collection. Senior sign-off on the baseline
 Collect quality metrics by product (e.g., cycle times, error rates, adjudication time)                                           will help focus efforts on solutions later
 Create system topography charts

 Map baseline (e.g., by cost center, product, location)

 Verify and validate baseline with key stakeholders


Factor In Other Key Information (internal, benchmarks, etc.)
                                                                                                                               Collaborative effort with a joint CSFB/Deloitte
                                                                                                                                  team: will obtain the „coal-face‟ view of the
 Gather other organizational information as
 needed (e.g., ongoing initiatives, project
                                                                                                                                processes, escalate latent opportunities and
 updates)                                                                                                                      enable the team to aggregate and synthesize
 Gather external benchmark data on functions,                                                                                      common themes for broader applicability
 processes and roles to enable gap analysis
 and quantification of opportunities
                                                             Conduct One-on-One Process/Workflow Reviews
                                                             FID/Equities – Cash (NY)
                                                             FID/Equities – Cash (LN)
                    Preparation                              FID/Equities – Derivatives (LN)
                                                             Structured Products (NY)

                                                              Conduct interviews with managers at various
                                                               levels of the organization to better understand
                                                               the organization, its functions and processes
                                                               and begin pin-pointing issues

      Working Meeting/Decision Point
      Deliverable
      Senior Management Progress Report


                                                                                                                 - 16 -
                                                                                                                                                                                                            Go/No Go Decision
                     A Methodical, Iterative Assessment Of The Current State Will                                                                                                                     Stage 1                Stage 2
                     Generate The Set of Possible Opportunities

                                                                                                “Unwind” and Assess
                Week 4                                         Week 5                                         Week 6                                   Week 7                                        Week 8


Disaggregate Processes And Workflows Into Core Components                                                                 “As-Is” Process Maps
                                                                                                                          With regional variances, handoffs,
 Trace and analyze workflows through each process and key controls                                                       high-level systems mappings etc.
 Identify and refine the underlying drivers of work and complexity and assess the ability to influence workflow
 (e.g., policy changes to drive down iterative review processes; IT „quick hits‟ to affect complexity)
 Validate mapping and drivers with process owners
                                                                                                                                                                              Full spectrum of opportunities
 Compare performance and contrast processes to industry practices
                                                                                                                                                                              ranging from „Quick Hits,‟ near-term
 Identify „Pain Points‟ - sources of inefficiencies, redundancies, extraneous work across functional lines, and
 control weaknesses (e.g., cross functionally by product, FTEs, and activities)                                                                                               requiring minimal investment/change
                                                                                                                                                                              and to longer term requiring more
                                                                                                                                                                              significant change or investment



                                              Test Alternatives And Generate Points Of View                                                                       Preliminary Assessment
                                                                                                                                                                  Initial reengineering set, first-cut
                                               Generate top-down and bottom-up savings hypotheses (top-down for areas of greatest                                priorities to share with
                                                relevance, bottom-up for clear breaks and consistencies, control faults, and other                                stakeholders
                                                transgressions)
                                               Test opportunities with key process owners and management; refine set

                                               Build a more in depth aggregation and quantification of potential benefits, economics,
                                                and opportunity costs/tradeoffs (e.g., risk, control, interdependencies etc.)
                                               Develop and document an interim list of program improvement opportunities including
                                                „Quick Hits‟. Examples could include:
                                                 Identification of common data sources to integrate risk incident reporting across silos
                                                   and enhance hedge accounting processes
                                                 Develop a standard method for the implementation of GL/Financial Balance Sheet
                                                   controls from both a financial and US GAAP perspective
                                                                                                                                                           Validate Recommendations
                                                                                                                                                                                                                   High-Level „Future
                                                                                                                                                                                                                   State‟ Functional
                                                                                                                                                                                                                   Model
                                                                                                                                                            Transform aggregated set of activities into “strawman” future
                                                                                                                                                               state
                                                                                                                                                            Review “strawman” structure with Functional
                                                                        Iterative process promotes buy-in among                                                representatives, validate assumptions and obtain feedback
                                                                            the functional managers related to the                                          Create model of “final” future state and high-level
                                                                             initiatives and mitigates resistance to                                           recommendations
                                                                                                                                                            Communicate findings to Steering Committee and external
                                                                                                 proposed changes                                              stakeholders (e.g., EXB, Finance)
       Working Meeting/Decision Point
       Deliverable
       Senior Management Progress Report


                                                                                                                    - 17 -
                                                                                                                                                                                                     Go/No Go Decision
              Finally, A Detailed Roadmap Will Provide Management With The                                                                                                                       Stage 1         Stage 2
              Guidance Necessary To Execute Effectively Against Plans

                                                                                                Recommend
        Week 8                                        Week 9                                        Week 10                                         Week 11                                    Week 12

                                                                                                            Strategic planning stage to ensure all
                                                                                                            aspects of the process are considered
                                                                                                            from Front Office to IT
              Outline Implementation
              “Waves” And Sequence                                                                             Implementation
                                                                                                               Waves
                Work with CSFB to prioritize „waves‟ of implementation

                Assess and document implications for internal and external user                                                                   Detailed planning, continued organizational
                groups (e.g., organizational, technology, procedural, control,                                                                     commitment, and regular communication and
                reporting, regulatory, trade life cycle)
                                                                                                                                                   follow-up are crucial to realize the full benefits
                                                                                                                                                   of the implementation planning process


                                                             Develop Implementation/Migration Plan                                                                                     High-level Migration Plan
                                                                                                                                                                                       Implementation Plan
                                                                                                                                                                                       Performance Metrics
                                                              Develop high-level Migration Plan to execute on the recommended and prioritized process
                                                               improvement opportunities
                                                              Develop detailed Implementation Master Plan with dependencies

                                                              Identify initiative ownership, define roles and responsibilities of resources

                                                              Develop metrics and benefits tracking approach; identify supporting tools

                                                              Work with management team to ensure buy-in
                                                                                                                                                                                             Connect business case benefits
                                                              Develop organizational readiness plans
                                                                                                                                                                                             to other parts of the organization
                                                              Syndicate and adjust plans with external stakeholders




                                                                                                             Develop Supporting Business Cases
                                                                                                                                                                                                                         Business
                                                                                                               Validate key business case inputs and assumptions with functional
                                                                                                                                                                                                                         Cases
                                                                                                                representatives/process owners
                                                                                                               Build business case (financial and non-financial) for priority initiatives

                                                                                                               Create tracking and reporting infrastructure for progress and achievements



Working Meeting/Decision Point
Deliverable
Senior Management Progress Report


                                                                                                           - 18 -
                                                                                                                                                                                                Go/No Go Decision
                 If A Go Decision Is Reached, Activities Transition To Execution Of
                                                                                                                                                                                           Stage 1                Stage 2
                 “Quick Wins” And Detailed Design For High Priority Projects

                                                                                                     Implement
      First 3 months                       Next 3 months                                                Wave 2                                                                 Wave 3

Manage Program, Facilitate Change, Track Outcomes
 Establish program management office

 Implement progress tracking system

 Develop and implement reporting tools and metrics

                                                                                     Teams focused on a
                                                                                                                                               NOTE: ILLUSTRATIVE
Detailed Designs
For „Quick Wins‟
                                                                                     small number of high                                      NOT WITHIN SCOPE OF
                                                                                     priority initiatives
 Develop detailed plans
                           Detailed Design
                                                                                     across BUs/platforms                                        THIS RESPONSE
 Develop functional design document



                      Begin Roll-out of „Quick Wins‟
                      Execute against plans


 Begin Conceptual Designs                                                                                                   Continue “waved” implementation approach:
 For Priority Projects
                                        Conceptual Design                                                                    For broad process improvements (e.g.,
 Design End-State business architecture                                                                                      structured trade review consolidation), pilot in
 Syndicate with stakeholders                                                                                                 select platforms/geographies
                                       Detailed Designs For                                                                  Transfer knowledge across BUs, platforms, and
                                       Priority Projects                                                                      geographies
                                                         Detailed Design
                                     Reconfirm business requirements

                                     Develop functional specifications and design documents
                                                                                                                                                                                Periodically re-evaluate
                                     Develop rollout plans
                                                                                                                                                                                plan and re-sequence to
                                                                                                                                                                                maximize value
                                                         Begin Pilot/Rollout Wave 1

                                                          Execute against plans




                                                                         Design Wave 2                                  Pilot/Rollout Wave 2
                                                                          Develop functional specifications
                                                                                                                    Execute against plans
                                                                          and designs documents
                                                                          Develop rollout plans                                                Design Wave 3                          Pilot/Rollout Wave 3
       Working Meeting/Decision Point                                                                                                           Develop functional specifications       Execute against plans
                                                                                                                                                and designs documents
       Deliverable
                                                                                                                                                Develop rollout plans
       Senior Management Progress Report


                                                                                                               - 19 -
IV. “Test Driving” The Approach
                    Our Approach Is Best Demonstrated By Working Through An Example


Today: Apr 4, 2005               Today: April 25, 2005         Today: May 9, 2005           Today: May 16, 2005        Today: May 27, 2005          Today: June 17, 2005
Monday                           Monday                        Monday                       Monday                     Friday                       Friday



  Kick off the                       Work with                    Figure out                       Work with                Meet with                      Build the
    project                           team to                      top down                      team to build               team to                       financial
                                   finalize the                 opportunities                      bottom up               prioritize                    business case
                                     baseline                                                     initiatives             and sequence
                                                                                                                         opportunities

  Project Day 1                    Project Day 21                Project Day 35                  Project Day 42           Project Day 56                 Project Day 67




                                 3-4 weeks                                      5 weeks                                      3 weeks

                                 Examine                              „Unwind‟ and Assess                                Recommend
                              Build the Baseline                    Explore and Validate Opportunities            Build a Roadmap and Prepare for
                                                                                                                           Implementation

                                                                                                            In this phase, we assemble the selected
                  The first weeks involve collaborative data     During this period, the broadest set of     opportunities, identify the resources for
                   gathering to build on our existing CSFB      possible reengineering opportunities are     implementation and create the detailed
                    fact base1 for future decisions and to      examined across all products to test and     plans needed to enable rapid transition
                      enroll a broad set of CSFB team            refine them, and to clearly understand       to execution and delivery of savings.
                   members whose assistance and buy-in             the range of options and tradeoffs           This period also provides time for
                      for implementation will be critical             available to Product Control            additional communication and buy-in
                                                                                                                   both internally and externally




1See   appendix

                                                                                        - 21 -
                                                                                                                                                                                                                                                                                                                                                                                                              Today: April 25, 2005
                                                                                                                                                                                                                                                                                                                                                                                                              Monday


                                                                                                                                                                                                                                                                                                                                                                                                                 Day 21:
                           Day 21: Derivatives Baseline Completed With Areas Warranting Further                                                                                                                                                                                                                                                                                                               Finalize the
                                                                                                                                                                                                                                                                                                                                                                                                                baseline
                           Scrutiny Identified
Opportunity identification from both a process/control and cost perspective will have been driven out
                                                                                                                                                                                                                                                                                                                                                              ILLUSTRATIVE
across the products

                                                             Derivatives PC Data Elements                                                                                                                                            Day 1: April 4th
                                                                                                 Org                                                                                 Head                         Process                                                                                                       External
                                                                                                                         Financial                                                                                                                                      Tech               Controls                                                                         Metrics Bottlenecks
                                                                                                Charts                                                                               count                         Maps                                                                                                        Interaction
                 1
                                                              D.59H CTRS FID IRP Exotics
                   The data collection effort                       Ahmed Kubba                                                                                                                                                                                     
                        will be significantly                 D.80H CTRS FID IRP Vanilla
                  streamlined by leveraging                         Ahmed Kubba                                                                                                                                                                                     
                                                                D.20H CTRS FID Europe
                               existing data                          Amin Bilal                                                                                                                                                                                    
                                                             D.49HX2A NY FID Prod Ctrl IRP
                                                                      Sui-Pak Ho                                                                                                                                                                                    
     Front Office/Back Office
          Reconciliation                 2
            Handoffs – 1                 A value stream
            Controls – 3
           Complexity - x                map will identify                US Credit Derivatives & IRP: D.49HX2A                                                                                                                                                                                                                                                              Day 21: April 25th
     Processing Time – 10 mins
        Set Up Time – x mins             bottlenecks and             UK Credit Derivatives: D.20H
                                                                          Location: London                                                                                                                                                                                                                                                                                 Day 21: April 25th
         Queue Time – x hours
                                         control breaks              IRP: D.59H/D.80H
                                                                  UK Location: London
                                                                          Owner: Ahmed Kubba                                                                                                                                                                                                                                                                       April 25th
                                                                                                                                                                                                                                                                                                                                                           Day 21: Financial
                                                                                                                                                               Enrichmen
                                         as well as                                                                                                                ts                                                                                                                                                                                 Create                               Analysis
        Cash Reconciliation                                       Location: London Kubba Data Integrity
                                                                     Owner: Ahmed 38
                                                                          Headcount:                                                                                                                                                                                                     Management
                                         identifying                                                                                                                &                                                        Validation
                                                                                                                                                                                                                                                                                          & Change
                                                                                                                                                                                                                                                                                                                                                      Trial                                &
            Handoffs – 1                                                                                                                                       Adjustmen                                                                                                                                                                              Balance                              Reportin
            Controls – 0                 opportunities for          Headcount: Kubba
                                                                  Owner: Ahmed 38                                                                                  ts                                                                                                                                                                                                                      g




                                                                                                                     Structured Trade Reviews
           Complexity - x
                                         improvement              Headcount: 38




                                                                                                                                                                                                                                                                                           Training & Development
      Processing Time – 7 mins




                                                                                                                                                    Provision & Valuations
         Set Up Time – x mins




                                                                                                                                                                                                                                                                                                                               Create Trial Balance
                                                                                                                                                                              GAAP Adjustments
         Queue Time – x hours




                                                                                                                                                                                                                                  Account Ownersip

                                                                                                                                                                                                                                                     Model Validation




                                                                                                                                                                                                                                                                                                                                                         Data Collection
                                                                                                                                                                                                 P&L Validation




                                                                                                                                                                                                                                                                                                                                                                                              MIS Reporting
                                                                                                                                                                                                                                                                                                                                                                            P&L Analysis
                                                                                                                                                                                                                  Price Testing




                                                                                                                                                                                                                                                                            Management
             Reconciliation
         I/C Reconcilliation




                                                                                                        Other Recs
            Handoffs – 1




                                                                                                                                                                                                                                                                                                                    Projects
            Controls – 0
                                                                                               FOBOs
          Complexity - x
      Processing Time –5 mins
         Set Up Time – x mins
         Queue Time – x hours

                                                                               Size            3.3 2.9 8.6                                      5.9                          1.8                 2.2 1.6 0.6 0.2                                                          2.3             0.5                       1.4        0.9                       0.7                3.0              2.3
           Price Testing

           Handoffs – 0
                                        3                               Vol. Sensitivity (%)   71      82            98                         72                           74                  78               90              61 100                                  80              80                        76         78                        63                  80              80
            Controls – 2
          Complexity - x                Detailed product                   Risk Profile        X        X            X                              X                        X                   X                X               X                  X                      X             X                         X          X                          X                     X            X
     Processing Time –18 mins
         Set Up Time – x mins          specific baselines
         Queue Time – x hours
                                        will be created to              Control Procedures     X        X            X                              X                        X                   X                X               X                  X                      X             X                         X          X                          X                     X            X
Structured Trade Reviews (Exception)
            Price Testing
                                          determine pain
Structured Trade Review (Exception)
         Criteria: Deal size            points and major               Business Constraints    X        X            X                              X                        X                   X                X               X                  X                      X             X                         X          X                          X                     X            X
         % exception: 20%
            Handoffs – 0
                                           areas of focus
                                                                           Tech enabled        X        X            X                              X                        X                   X                X               X                  X                      X             X                         X          X                          X                     X            X
            Controls – 2
           Complexity - x
     Processing Time –18 mins                                           External Interaction   X        X            X                              X                        X                   X                X               X                  X                      X             X                         X          X                          X                     X            X
          Set Up Time – x mins
         Queue Time – x hours


                                                                                               - 22 -
                                                                                                                                                                                                                                                                                                                                                                                                                                                   Today: May 9, 2005
                                                                                                                                                                                                                                                                                                                                                                                                                                                   Monday



                                                                                                                                                                                                                                                                                                                                                                                                                                                    Day 35: Top
                                                       Day 35: Hypotheses Developed To Reduce The Cost Of Structured Trade                                                                                                                                                                                                                                                                                                                             Down
                                                                                                                                                                                                                                                                                                                                                                                                                                                   Opportunitie
                                                       Reviews Within Derivatives                                                                                                                                                                                                                                                                                                                                                                        s

Using a top-down approach, the baseline is unwound around the primary cost reduction levers to identify
                                                                                                                                                                                                                                                                                                                                                                                                                                      ILLUSTRATIVE
areas with the biggest “bang-for-the-buck”
  Derivatives
                                                                             Enrichments                                                                                                                                                                                                              Financial
                                                                                                                                                                                                   Management &                                          Create Trial
                            Data Integrit y                                       &                                                 Validation                                                                                                                                                        Analysis &
                                                                                                                                                                                                   Change                                                Balance
                                                                             Adjustments                                                                                                                                                                                                              Reporting

                                                                                                                                                                                                                                                                                                                                      4
                                                 Structured Trade Rev iews




                                                                                                                                                                                                                  Training & Dev elopment
                                                                             Prov ision & Valuations




                                                                                                                                                                                                                                                        Create Trial Balance
                                                                                                       GAAP Adjustments




                                                                                                                                                           Account Ownersip
                                                                                                                                                                                                                                                                                                                                      Structured trade reviews have the

                                                                                                                                                                               Model Valid ation




                                                                                                                                                                                                                                                                               Data Collection
                                                                                                                          P&L Validation




                                                                                                                                                                                                                                                                                                                 MIS Reporting
                                                                                                                                                                                                                                                                                                 P&L Analy sis
                                                                                                                                           Price Testing




                                                                                                                                                                                                   Manag ement
                                    Other Recs




                                                                                                                                                                                                                                             Projects
                                                                                                                                                                                                                                                                                                                                      highest sub process headcount                                 5
                            FOBOs




            Size            21      19           25                          10                        5                  13               13              5                   1                   10            1                          16          1                      1                 16              9                    allocation and one of the highest
                                                                                                                                                                                                                                                                                                                                                                                                     The cost of structured trade reviews
     Vol. Sensitivity (%)   74      80           92                          66                        79                 56               56              75                 100                  49            65                         69          78                     63                60              42
                                                                                                                                                                                                                                                                                                                                      variable % across derivatives
        Risk Profile        X       X            X                           X                         X                  X                X               X                  X                    X             X                          X           X                      X                    X            X
                                                                                                                                                                                                                                                                                                                                                                                                     should be able to be reduced by:
    Control Procedures      X       X            X                           X                         X                  X                X               X                  X                    X             X                          X           X                      X                    X            X                    warranting further investigation
    Business Constraints    X       X            X                           X                         X                  X                X               X                  X                    X             X                          X           X                      X                    X            X                                                                                       1) Reducing the cycle time
       Tech enabled         X       X            X                           X                         X                  X                X               X                   X                   X             X                          X           X                      X                    X            X

    External Interaction    X       X            X                           X                         X                  X                X               X                   X                   X             X                          X           X                      X                    X            X                                                                                       2) Reducing the complexity
                                                                                                                                                                                                                                                                                                                                                                                                            associated with the STR

                                                                                                                                                                                                                                                                                                                                             Decrease Workflow Cycle Time                          Decrease Complexity of Review Process

                                                                                                                                                                                                                                                                                                                                 Potential                                                   Potential
                                                                                                                                                                                                                                                                                                                                  Impact                      Hypothesis                      Impact                      Hypothesis

                                                                                                                                                                                                                 Redesigning/                                                                                                                Redesign data capture to reduce the                         Reduced number of breaks will reduce
                                                                                                                                                                                                                 Reengineering                                                                                                               number of breaks                                            complexity and time spent on reconciliations
                            Process
                                                                                                                                                                                Elimination of Low
                                                                                                                                                                                                                                                                                                                                             Limit number of ad hoc/redundant reports                    Restructure the STR work flow process
                                                                                                                                                                              Value Added Activities
                                                                                                                                                                                                                  Functional
                                                                                                                                                                                                                                                                                                                                             Limited impact                                              Consolidate like STR activities
                    Organizational                                                                                                                                                                               Consolidation
                      Structure
                                                                                                                                                                                                                                            Relocation                                                                                       Limited impact                                              Limited impact

                                                                                                                                                                                                     Span of Control                                                                                                                         Limited impact                                              Limited impact

                                People                                                                                                                                                                                                                                                                                                                                                                   Reduce errors by better matching resource
                                                                                                                                                                                                                 Resource Mix                                                                                                                Limited impact
                                                                                                                                                                                                                                                                                                                                                                                                         skill levels to value added activities
                                                                                                                                                                                                                                                                                                                                                                                                         Reallocation of specialists‟ time to
                                                                                                                                                                                                                                            Utilization                                                                                      Limited impact
                                                                                                                                                                                                                                                                                                                                                                                                         proportional focus areas
                                                                                                                                                                                                                                                                                                                                             Increase risk filters and customize risk
                                                                                                                                                                                                     Control Policies                                                                                                                                                                                    Limited impact
                       Risk/Policies/                                                                                                                                                                                                                                                                                                        thresholds for individual derivative products
                        Procedures                                                                                                                                                                                                                                                                                                           Modify FO operating procedures to reduce
                                                                                                                                                                                                    Service Policies                                                                                                                                                                                     Standardize FO adjudication procedures
                                                                                                                                                                                                                                                                                                                                             the number of breaks
                                                                                                                                                                                                   Quick Wins/BoW                                                                                                                            Align technology processing to workflow                     Streamline back through front office
                                                                                                                                                                                                     Modification                                                                                                                            management                                                  interface applications
                        Technology
                                                                                                                                                                                                                                                                                                                                             Implement single source of data to reduce                   Operational Data Store will enable high
                                                                                                                                                                                                                  Large Scale
                                                                                                                                                                                                                                                                                                                                             the number of breaks                                        integrity data extraction
                                                                                                                                                                                                                                    Key hypothesis warranting further investigation                                                                               - 23 -
                                                                                                                                                                                                 Today: May 16, 2005
                                                                                                                                                                                                 Monday


                                                                                                                                                                                                   Day 42:
                                                                                                                                                                                                 Build Bottom
                                                                                                                                                                                                      Up
                                     Day 42: Opportunities For Interest Rate Derivatives Have Been Outlined                                                                                      Initiatives


Applying the top-down hypothesis from a bottom up perspective identifies the practical implications of a
                                                                                                                                                                                    ILLUSTRATIVE
change                                               Key STR hypotheses developed from a derivatives
                                                                                          6
                                                                                                 perspective are applied against Interest Rate
                                                                                                 products to develop specific opportunities


   STRs within Interest Rate Derivatives                                         Decrease Workflow Cycle Time                                   Decrease Complexity of Review Process
    8.8 FTEs                                                                              Hypothesis 2                                  Hypothesis 1          Hypothesis 2            Hypothesis 3
    96% Variable                                                    Hypothesis 1                                  Hypothesis 3
                                                                                            Modify FO                                    Redesign STR         Consolidate STR         Align resource
    >100 per month                                                   Risk filter                               Tech modifications
                                                                                            procedures                                     workflow              activities                 mix
                                                                                        Standardize spread-
                                                                                                                Expedite Panorama                            Consolidate IRP STR     Utilize low cost
                                                                                        sheets, adjudication
                                                                                                                rollout enforcing FO   Implement STR         rec/booking review      labor to conduct
                                                  Opportunity     N/A                   process. Book
                                                                                                                migration from         tracking process      with other products     recs/ booking
                                                                                        trades on server/no
                                                                                                                spreadsheets                                 subject to STRs         reviews
                                                                                        manual tickets
                               Reconciliation/
                                 Booking           Additional                           Cost of change          Scarce technology      Scarce technology     Additional handoff      Must maintain
                                                                N/A
                                  Review         Considerations                         management              resources              resources             created                 quality control
                                  (50%)          Control & Risk                         Reduced                 Reduced control        Revisit key control   Heavy reliance on       Increased
                                                                N/A
    Disaggregate STR Process




                                                 Considerations                         operational risk        cycles                 checkpoints           key personnel           operational risk
                                                                                        5% - 15% reduction      10% - 30% reduction Reduce STR               Centralized function
                                                                                                                                                                                     Cost per FTE
                                                     Impact       N/A                   of STR cycle time       of STR cycle time   processing time;         reduces overlapping
                                                                                                                                                                                     reduction
                                                                                        due to fewer breaks     due to fewer breaks increased capacity       FTEs
                                                                  Adjusting risk filters                                                                   Limited consolidation     Utilize higher cost
                                                                  will drive down                                                      Implement STR       opportunities due to      labor to conduct
                                                  Opportunity                            N/A                    N/A
                                                                  cycle times for                                                      tracking processing required product          value add
                                                                  vanilla IRPs                                                                             specific knowledge        activities

                                                                Risk expertise
                                 Valuation         Additional
                                                                required to ensure      N/A                     N/A                    Technology options N/A                        N/A
                               Model Review      Considerations
                                                                control adequacy
                               & Accounting
                                  (50%)          Control & Risk Increase risk filter                                                                                                 Increased
                                                                                        N/A                     N/A                    Increase controls     N/A
                                                 Considerations checks                                                                                                               operational risk

                                                                                                                                       Facilitate enhanced                           Targeted use of
                                                                  2% - 10% reduction                                                                                                 high cost labor
                                                     Impact                          N/A                        N/A                    interactions with   N/A
                                                                  of STR cycle time
                                                                                                                                       the VRG                                       Enhanced morale




                                                                                                                        Bottom-up initiatives need to be aggregated across
                                                                                                                 7      products, geographies, and entities. Validating and
                                                                                                                        assessing the impact of the aggregated opportunities
                                                                                                                        will facilitate the sequence of implementation
                                                                                                               - 24 -
Successful Execution In Stage Two Of The Reengineering Initiative Will Be Predicated
On The Foundation Built In Stage One


                         Waves must be planned in short, manageable intervals
                         Resources must be committed flexibly so they can „shrink‟ or „grow‟ depending on the
                          requirements of the task
Operational Execution
                         Global variations must be understood and accommodated
                         Technology implications must be addressed and managed (e.g., prioritization of the IT
                          Book of Work)

                         Short-term and long-term savings targets must be clearly defined
                         Clear performance metrics to track progress are required
      Financial
                         Stick to the overall plan; adjustments (e.g., milestone slippage) will impact the
                          business case

                         Customer impacts must be understood
                         Success is predicated on key managers buying into and actively championing
                          outcomes
    Stakeholders
                         More comprehensive reengineering requires a multi-disciplinary approach in which
                          FO, Product Control, Operations, IT and Financial Control act as an integrated,
                          cohesive team

                         The overall business strategy must drive the areas of focus for this initiative so that
      Strategy            reengineering enables the development of a „clean‟ platform to support the aggressive
                          business growth that CSFB plans


                         Timing and composition of waves should be determined by the need to balance
                          speed, cost savings and risk
  Risk Management        Demands of regulatory, tax and legal requirements must be factored in
                         All moving parts of the plan must be synchronized before finalizing implementation
                          plans




                                                 - 25 -
V. Team Structure, Profiles and Fees
                    Proposed Team Structure



                                                               Governance Committee


                                                            TBD – Primarily PC representatives


                                                                                                                       Make key decisions, sign-off on major deliverables
                                                                                                                        and act on recommendations
                                                                                                                       Identify and assign appropriate resources to the
                                                       Project Oversight – „Setting Direction‟                          assessment
                                                                                                                       Deloitte‟s cross-functional support to be leveraged
                                                                                                                        as needed – from reengineering „heavy lifting‟
                                                                                                                        Adam) to deep product control expertise (Lisa) to
                                                                                                                        audit/risk advisory (Sal) to day-to-day CSFB
                                                                                                                        navigation acceleration (Liz)


    Meet objectives within timing and
                                                         Execution Team – „Getting It Done‟
                scope outlined by the
                   Project Leadership
       Manage day-to-day activities –                         Global Project Manager(s)
       project communication, analysis                                                                                                  Own the overall financial and
          and deliverable development                                                                                                    process models
      Develop recommendations and                                                                                                      Drive consistency of approach
                drive issue resolution                  NY                                   London                                      across products and regions
                                               NY Team (3-4 CSFB)                     London Team (3-4 CSFB)                            Aggregate and prioritize
                                                   1 Manager (D)                           1 Manager (D)                                 opportunities
                                                1 Sr. Consultant (D)                    1 Sr. Consultant (D)
                                                    1 Analyst (D)                         1 Consultant (D)
 Resources with deep knowledge of a                              Product Specialists
               particular product area
   Work hand-in-hand with core team              FID/Equity Cash & Derivatives/Structured Products (D)
   during interviews, workshops and to
       formulate and test opportunities                          Functional Specialists
                                                                                                                                        Provide additional deep
                                          Audit, Tax, Regulatory, Risk, Quantitative, Reengineering & Valuation (D)
                                                                                                                                         expertise on specific issues and
                                                                                                                                         questions as needed



  D – Deloitte

                                                                             - 27 -
         Fees, Expenses, Deloitte‟s Team And Diversity



              This project will be led by Deloitte Consulting LLP, with assistance from Deloitte & Touche and affiliated entities as
               needed to bring the right resources, expertise and experience to this effort
  Fees        We estimate our fees for this project to be xxMM. A breakdown of our levels and daily rates is on the following page
              We are committed to continuing our relationship with CSFB. We believe our pricing reflects the market value of our
               services, and would be pleased to discuss this pricing proposal with you



              We will make every effort to minimize expenses, and believe they will not exceed 15% of our fees unless extensive
Expenses       international travel is required. Please note that the teams working in London and New York will be staffed by
               practitioners from those countries. Actual expenses will be charged as incurred



              Oversight for Deloitte‟s team will be by Adam Broun, Ken Landis, Liz Healy, Lisa Choi & Sal Davide leveraging relevant
               expertise as needed throughout the process
              Shahzad Shah and Nick Blake will form the on-site, day-to-day leadership in New York. We have proposed a team split
               between New York and London, aligned with CSFB‟s resources and products
Deloitte‟s
 Team         The remainder of our team will be assembled before commencement of the work and will bring a blend of analytical,
               process mapping and reengineering skills, along with in-depth product knowledge for each of CSFB‟s businesses and
               subject matter expertise on matters such as regulatory requirements, valuations and operational risk.
              We have based our team structure on our understanding of the RFP and other provided information. We are happy to
               discuss alternate team structures and how to make them effective



              We are pleased to present a team that reflects the diversity of our Firm
Diversity
              The Supplier Questionnaire describes our commitment to diversity and inclusion in greater detail




                                                               - 28 -
          Engagement Fee Summary

As requested in the RFP, outlined are the rates used to calculate our pricing estimate. In recognition of our
relationship with CSFB, these rates continue to reflect a significant discount from our standard rates. Our rates are
based on a 10-hour day; our custom is considerably greater.



                                                         Level             Daily Rate ($)

                                                   Partner / Principal

                                                   Senior Manager




                                        New York
                                                   Manager

                                                   Senior Consultant

                                                   Analyst

                                                   Partner/Principal

                                                   Senior Manager
                                        London




                                                   Manager

                                                   Senior Consultant

                                                   Consultant




Our estimate includes leadership and oversight from our partners and principals. We generally dedicate time over
and above that estimate at no additional cost in order to provide the quality of service that CSFB has come to
expect from Deloitte.

                                                                  - 29 -
VI. Qualifications & References
          We Have Significant Experience In Defining And Implementing Programs At CSFB

                                                                Sample Recent Engagements

                           Performed a comprehensive impact assessment of
   Plan ‟06 Impact                                                                            Product Control      Assisted with the development of the Product
                           the Front Office Plan ‟06 initiatives on the resources
    Assessment                                                                                 Strategic Plan      Control Strategic Plan and book of work for 2004
                           and costs of the IT, PC and Ops organizations

                           Conducted a review of the IT and ISIS organizations
    ISIS Business          that included mid-year performance to budget, „deep                                     Assisted with the management, structuring, and
                                                                                             Records Retention
       Reviews             dive‟ analysis of the project portfolio and detailed                                    execution of CSFB‟s IT Record Retention Strategy
                           org and work driver analysis

                           Developed comprehensive transparency reports
                           detailing progress towards goals, costs, headcount,                                     Developed business requirements and transaction
 ISIS Transparency                                                                             Trade Services
                           project and work driver information to the Front                                        walk-throughs for Trade Services
                           Office

                           Performed an in-depth cost driver analysis of the                 Business Continuity   Developed a global operating model for BCP that
  Middle Office Cost
                           Middle Office organization in the Americas and                    Planning Operating    defined roles and responsibilities and established
     Driver Analysis
                           Europe                                                                  Model           governance

                           Developed a global data center strategy focusing on
                                                                                                                   Performed an in-depth assessment of the
Data Center Strategy       BCP, DR and recent regulatory environments. Also
                                                                                                  Basel II         completeness of the implementation requirements
  & Implementation         assisted in setting up the PMO for the
                                                                                                                   and technology solution for Basel II reporting
                           implementation

                           Developed the structure, vision and the processes                                       Established a program management office to
                                                                                             Mortgage Change
     IT Strategy           required to support the launch of CSFB‟s IT                                             monitor and track the execution of the Mortgage
                                                                                                 Program
                           organization                                                                            Change Program


                                                                                                                   Assisted the COO of HR in establishing a program
                           Developed a global Infrastructure strategy for the
Infrastructure Strategy                                                                           HR COO           management office and in baselining strategic
                           newly appointed CTO
                                                                                                                   initiatives

                                                                                                                   In support of the IT Deployment initiative, we
                          Performed a comprehensive impact assessment of
  European Support                                                                                                 conducted a resource inventory of 4,000 IT and
                          and defined initiatives to support Plan ‟06 for                      IT Deployment
      Strategy                                                                                                     infrastructure positions and developed detailed
                          European FA&O
                                                                                                                   “wave” plans for deployments

                          Assisted in completing regulatory application and                                        Analyzed and documented daily overnight
  Broker/Dealer Lite      initial SEC review. Developed technical policies and                 Prime Services      processing cycle and established service level
                          procedures                                                                               agreements



                                                                                    - 31 -
                 We Have Built A Number of Relationships Across Various Functions Based On Project
                 Delivery At CSFB And Have Recently Worked With Multiple Managers Across Product
                 Control During The Middle Office Work Driver Project

                      IT/ ISIS/ORM            ISIS - Product Control          FA&O - Europe




                                                                             Financial Control
                              ISIS



                                                                                    HR




                                                                                 SPI/PSD




                               IT                                           Corporate Services



                                                                                  RMM
                                                      ORM



                                                                                   CSG




                                                    Equities




Blue = CSFB Project Sponsor
                                                       - 32 -
         Recent Highlights Of Our Work In The Global Financial Services Sector

                         Process                                                                     Other Back                    Migration
                                        Operational                                    Controlling                Technology
                                                        Cost Reduction       Banking                   Office                      Planning/
                      Re-engineering   Transformation                                  Functions                  Optimization
                                                                                                     Functions                   Implementation




National Commercial
Bank #2




                                                                         - 33 -
                     Qualifications – Product Control

                     Multi-Line Global Investment Bank - NY                                                                           Global Investment Bank

  Deloitte was engaged to conduct a review of a global investment bank‟s                                   For a global investment bank, Deloitte was engaged to assist in
  Product Control function, operational and valuation models, and work                                     documenting the firm's risk and pricing models to assure they met the firm's
  processes for the equity derivatives business.                                                           CSE readiness initiatives. Products included fixed income derivatives,
                                                                                                           MBS and equities.
  Results:
   Assisted Product Control in scheduling, managing and completing their                                  Results:
    annual model review                                                                                     Completed all model documentation within 60 days and submitted to
   Established baseline valuation model review procedures                                                   senior management
   Set annual review standards                                                                             Established model standards still in use
                                                                                                            Ensured/documented that risk and pricing models were CSE ready




                     Global Investment Bank – NY & London                                                                             Global Investment Bank

  For a global investment bank, Deloitte was engaged to conduct an                                         Senior Management engaged Deloitte to assist with a gap analysis of
  evaluation of whether the firm should re-enter the physical and financial                                business metrics for Product Controllers. We collected source
  energy trading markets. The Project Sponsor was Global Head of Product                                   documentation across the firm and created an overall Product Control
  Control and the firm‟s considerations included the expansion of trading                                  metrics inventory. The inventory was coded and placed in a database for
  operations, risk control and product management.                                                         integration into an OLAP tool that was implemented by another area in the
                                                                                                           bank. Our goal was to obtain consolidated enterprise wide reporting of key
  Results:                                                                                                 risk variables to support senior management reporting needs.
   Created a strategy document for Product Control‟s expansion
   Developed a business case and metrics that indicated the process was                                      Results:
    viable                                                                                                     Reviewed key metrics and created standardized views by metric
   Created a high level infrastructure and roadmap for conducting the new                                      definition, reporting type, business, and region
    trading activity                                                                                           Benchmarked business units against business group metrics i.e. Fixed
                                                                                                                Income, Equity, OTC
                                                                                                               Calculated metrics gaps by business unit for eventual standardization of
                                                                                                                reporting

Note: Due to confidentiality agreements signed with client we are not able to provide some client names on qualifications
                                                                                                     - 34 -
              Qualifications – Process Improvement & Cost Reduction



Deloitte was engaged to design and implement a strategic cost reduction                   Deloitte was engaged to redesign and improve IT and Operational
initiative to remove 350m Yen from the cost base of the operations                        functions. This included: the replacement of outdated legacy systems;
function. A 5 step approach to the design was used, capturing current                     elimination of duplication and unnecessary reconciliation and manual
operating model and process, base-lining and developing performance                       processes; and automation of information reporting.
metrics. We were then engaged in iterative re-design of process and
organization.
                                                                                          Results:
Results:                                                                                   Reengineered infrastructure and processes from settlement systems to
                                                                                            General Ledger
 Streamlined and re-engineered processes (segregating simple/complex
  tasks, reducing rework and managing waste in linear processes)                           Consolidated functions and processes from multiple accounting streams
                                                                                            to one integrated system utilizing SAP enabled re-engineering
 Introduced performance management techniques across the
  organization (people, process and systems performance management)                        Restructured the role of finance to encompass business support and
                                                                                            analysis rather than solely reporting of historic information
 The joint client/practitioner team re-designed the operations group in just
  under 12 weeks enabling the implementation team to deliver against the
  new operating model and processes in 14 weeks




Deloitte undertook a significant cost reduction exercise for overall                  Deloitte was engaged to redesign and improve IT and operational functions
operations, seeking to reduce the cost base by around £175m and reduce                which included enabling enterprise-wide shared services, enterprise-wide
the workforce by up to 25%. Deloitte worked closely with the client in a              management information strategies, and improved cost identification, cash
highly collaborative manner to rapidly identify and deliver tactical/quick win        management, reporting and procurement. Our work resulted in significant
results.                                                                              cost reductions.

Results:                                                                              Results:
 Savings of £177m delivered within 12 months:                                         Completely reengineered the finance function including cash
       IT Services £80m                                                                management, procurement and sourcing, general accounting, cost
       Procurement: £21m                                                               management, and reporting and analysis
       Support Services: £49m                                                         Measurable recurring annual benefits were estimated to be over 100 %
                                                                                        of the total project cost
       Customer Services: £27m
 All savings externally audited – final audited result was £201M



                                                                                 - 35 -
                     Qualifications – Process Improvement & Systems Implementations



    Deloitte was engaged to assist senior management in the reengineering of                                   Deloitte implemented a new treasury and derivatives system:
    BNP-Paribas Capital Market activities. This involved implementing a new
                                                                                                                Merrill Lynch bank - Deloitte conducted a front-to-back implementation
    back office system to manage derivatives in a centralized manner.
                                                                                                                 for the treasury activity products including bonds, money markets, loans,
                                                                                                                 swaps, CDs, commercial paper and repos
    Results:
                                                                                                                Merrill Lynch - Deloitte provided implementation assistance for a Summit
    Focusing on the reengineering of Back Office processes resulted in:                                          system installation to provide front-to-back office support for emerging
     Integration of all derivatives products in Murex                                                           market bond trading and foreign exchange business globally
     Integration of Murex Back Office into the BNP-BFI environment
                                                                                                               Results:
      (Accounting, Risk, FO systems...)
     Reengineering and redefining back office processes and procedures                                         Provided full program and project stream management
     Creating a new front-to-back office organization                                                          Designed business processes, developed and executed acceptance
     Rollout: Defined the go live strategy and migration plan. Successfully                                     tests and implemented plan (including validation of FX module newly
      managed the migration into Murex G2000                                                                     added by Summit for Merrill)
                                                                                                                Set-up accounting and testing



                               Global US Investment Bank                                                                                 Supranational Bank

    As part of a strategic project, Deloitte provided assistance for selection and                             Deloitte was appointed to implement a new front to back office organization
    development of a global multi-entity derivatives trading system capable of                                 plus accounting solution for treasury, fixed income and derivatives
    supporting all major types of derivatives.                                                                 (IRD,CD) activities.
                                                                                                               The large-scale project covered virtually all departments of the bank over
    Results:                                                                                                   an 18 month period, and involved a significant level of process re-
     Phase I - strategy feasibility study which considered high level business                                engineering.
      systems architecture, detailed business case, application architecture,
      detailed development and migration planning, detailed functional design,
      business process redesign and sizing and analysis of technical options                                   Results:
     Phase II - detailed evaluation of various risk management software                                        Provided program and project stream management; defined user
      packages to assess their functionality against the requirements identified                                 requirements and enhancements to the software; designed a new target
      in phase I. This focused on information technology issues, including                                       organizational structure and redefined transaction processes
      leading edge analysis of the use of the Sybase database product                                           Configured and integrated SUMMIT and SAP; built interfaces to the
     Phase III - provided implementation assistance, detailed design and                                        existing data warehouse and risk applications; conducted testing and
      architecture planning                                                                                      user training
Note: Due to confidentiality agreements signed with client we are not able to provide some client names on qualifications
                                                                                                      - 36 -
                     Qualifications – Operating Model Transformations

                                                                                                                                       Global Investment Bank

   Deloitte was engaged by ABN Amro to design a global operating model to                                      Deloitte was engaged to set up the Umbrella PMO for the equities and fixed
   combine FX and Money Markets. Key objectives included reducing cost,                                        income Operating Model Transformation Program. Priorities included
   enhancing transparency, driving consistency of attributable activities and                                  short-term focus on optimizing cost reduction and improving internal
   adding missing mission critical capabilities. Our work helped define a                                      controls and a medium-term focus on service improvements (both internal
   global operating model and standardized set of global processes.                                            and external). The Program was responsible for generating a minimum of
                                                                                                               €212 million savings by the end of 2005.
   Results:                                                                                                    Results:
    Increased efficiency with centralized desk management and more                                             Refocused equities and fixed income to create a robust, competitive and
     consistent pricing                                                                                          cost-effective platform
    Increased central control and reduced operational risk (simplified the                                     Defined mapping rules to determine interim location of functions in the
     current operating model, provided greater transparency for local trading                                    operating model
     activities)                                                                                                Devised business architecture principles underpinning the operating
                                                                                                                 model
    Reduced cost of operational infrastructure (centralized operational
                                                                                                                Conducted functional mapping of the operating model including a FTE
     systems and back office)
                                                                                                                 analysis to support the design effort
    Provided for costs avoidance and increased flexibility to take advantage                                   Repositioned the group to take advantage of future growth
     of future market opportunities




    Deloitte was engaged to develop a complete operating model re-design for                                   Deloitte was engaged to develop a Target Operating Model to lead re-
    a major banking division. The new model was designed to facilitate the                                     integration of credit cards businesses into to the group in combination with
    migration of the division to a new operating platform and several internal                                 lending as part of a new Consumer Finance division. Analyzed the two
    functions to new locations. Deloitte collaborated closely with client                                      prevailing operating models for loans (Bank of Scotland Direct and Halifax
    management to prioritize actions, make decisions and resolve major issues                                  loans) and credit cards and created a financially viable model.
                                                                                                               Facilitated workshops with key participants so consolidation opportunities
    Results:                                                                                                   could be identified and quantified. In a validation phase, we investigated all
     The Target Operating Model became the focal point of all change, in                                      identified opportunities. Working in teams with the client, we developed
      particular the complex re-organization of processes, functional                                          business cases and a high level implementation plan.
      responsibilities and costs over several sites
     The TOM enabled all involved to clearly understand the blueprint for the                                 Results:
      future, and for management to clearly see how the cost imperatives                                        Identified consolidation opportunities of £21m
      would be met through the re-organization                                                                  £20m in cost reduction was subsequently realized


Note: Due to confidentiality agreements signed with client we are not able to provide some client names on qualifications
                                                                                                      - 37 -
               Qualifications – Bank Wide Integration/Design




Deloitte was engaged after the merger to assist in the integration of diverse                 The bank proposed a global re-organization of its current operating
business practices and technology infrastructures, including Capital                          structure. Deloitte was engaged to define an operating model for each
Markets, and to provide PMO and resources to support integration activity.                    client-facing business line, support and control function. Design of the new
                                                                                              structure included: a review and assessment of existing Arab Bank
                                                                                              strategy; process and organization; modelling of generic best practices in
Results:
                                                                                              operations; assessment of key business issues; and the presentation of
Deloitte deployed an experienced team to assist JP Morgan Chase in                            action alternatives for further discussion.
various parts of the merger, focusing on:
 Synergies identification: prioritization of integration of high value activities
                                                                                              Results:
 Merger risk management: identification and quantification of potential
                                                                                               Created a high-level transition roadmap, capturing major risks and
  risks
                                                                                                obstacles associated with implementation of Head Office Charters
 PMO: managed the creation and issuance of deliverables and overall
                                                                                               Presented a newly defined mission statement to align the activities of
  project communication. Used PMO net to escalate key issues
                                                                                                each business line/ function
                                                                                               Defined and refined new regional responsibilities and intra-organisational
                                                                                                relationships




                                                                                     - 38 -
            Clients Who Are Willing To Share Their Experiences

Previous clients of Deloitte are available to speak to CSFB Evaluation Committee Members to provide insights into their
reengineering experience


              Managing Director                                          Project(s): Various Transformation Programs
              Business Management – Global Markets
                                                                         Project Role: Person..t served as the project sponsor and
              National Commercial Bank #1 UK,
                                                                          was a member of the project‟s steering committee




                                                                         Project(s): Deloitte & Touche is the independent auditor
                                  SENIOR MANAGING DIRECTOR
                                                                         Project Role: Person.. served as the senior business unit controller for Equities




                                                                         Project(s): Reengineering Front To Back & Systems Implementation
                                                                         Project Role: Person.. served as the BNP Paribas project sponsor and was a
                                                                          member of the project‟s steering committee

                                    Managing Director

                                    FRANCE




                         If you wish to speak to any of these references, please contact Adam Broun, +1 781 354 3231, abroun@deloitte.com
                                                             who will be pleased to arrange a conversation
                                                                                  - 39 -
VII. Available Tools
                                                                                              Sample Tools – Process & Initiatives Prioritization
                                                                                                                                                                                   IndustryPrint                                                                                                                                                                                                                           PriorITTM

                                                                                                                                      Is a collection of Industry specific, enterprise wide process                                                                                                                                                                                                       Is a highly flexible tool that enables teams to define their
                                                                                                                                       models that incorporate best practices for key business                                                                                                                                                                                                              own prioritization criteria and unique weightings to each
                                                                                                                                       and support functions                                                                                                                                                                                                                                                project to profile their risk/value tradeoff and thereby
                                                                                                                                      IndustryPrint is used to:                                                                                                                                                                                                                                            facilitate sequencing
                                                                                                                                          – Jump start projects by providing a starting point for
                                                                                                                                                                                                                                                                                                                                                                                                           Applying the prioritization criteria to each project yields a
                                                                                                                                            as-is and to-be modelling                                                                                                                                                                                                                                       user-friendly view of the Risk/Value relationship, rendering
                                                                                                                                                                                                                                                                                                                                                                                                            the low risk, “quick win” projects readily visible
                                                                                                                                                                        –   Integrate industry best practices, to inform process
                                                                                                                                                                            redesign and reveal performance improvement
                                                                                                                                                                            opportunities



                                                                                                                                                                            Information Space Maps                                                                                                                                                                                                                Cause & Effect Analysis

      Comparison of information space maps demonstrates a reduction in the
      complexity of the information exchange by analyzing the key components                                                                                                                                                                           Inappropriate Message
                                                                                                                                                                                                                                                         Levels for Client‟s

                                                                                                                                                                                                                                                                                 Ownership of Swift costs not with
                                                                                                                                                                                                                                                                                                                                      Inappropriate Swift
                                                                                                                                                                                                                                                                                                                                          Frequency
                                                                                                                                                                                                                                                                                                                          Customer‟s set up
                                                                                                                                                                                                                                                                                                                          with multiple Cash
                                                                                                                                                                                                                                                                                                                                                            No specific info on the
                                                                                                                                                                                                                                                                                                                                                                                          EFRITS
                                                                                                                                                                                                                                                                                                                                                                                       model does
                                                                                                                                                                                                                                                                                                                                                                                        not include
                                                                                                                                                                                                                                                                                                                                                                                      realistic Costs




                                                                                                                                                                                                                                                                                                                                                                                                            Fishbone analysis, used to force teams to focus beyond
                                                                                                                                                                                                                                                                                    CS who set up reporting                                                    system for cost            for Swift



      of the process under review.                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                         Accounts and Blanket
                                                                                                                                                                                                                                                                                                                                                           implications of Message      reporting in
                                                                                                                                                                                                                                                                                                                          Daily Reporting to
                                                                                                                                                                                                                                                      Historically, lack                                                                                          Reporting            Client Profit
                                                                                                                                                                                                                                                                                                                                these
                                                                                                                                                                                                                                                      of procedure for                                                                                                                     profile
                                                                                                                                                                                                                                                        creation of &
                                                                                                                                                                                                                                                                                           Economic                                                                   Costs owned
                                                                                                                                                                                                                                                       cancellation of
                                                                                                                                                                                                                                                                                                                                                                      by IS not CS



                                                                                                                                                                                                                                                                                                                                                                                                            symptoms to root causes. Provides a structure to cause
                                                                                                                                                                                                                                                       Swift Message                    climate did not                        Reporting selected by
                                                                                                                                                                                                                                           Lack of                                                                                                                    (who decide
                                                                                                                                                                                                                                                          Reporting                      require close                          people not aware of
                                                                                                                                                                                                                                         ownership of                                                                                                                 appropriate
                                                                                                                                                                                                                                                                                       scrutiny of Swift                          costs involved
                                                                                                                                                                                                                                        Swift message                                                                                                                 reporting)
                                                                                                                                                                                                                                                                                             costs



                                                                                                                                                                        Information Space Map benefits include:
                                                                                                                                                                                                                                             costs
                                                                                                                                                                                                                                                                                                                                                                                       Why are
                                                                                                                                                                                                                                                                                                                 Lack of training / awareness
                                                                                                                                                                                                                                                                                                                                                                                      Erroneous



     “As-Is” Information Space                                                        “To-Be” Information Space
                                                                                                                                                                                                                                                     No formalised training
                                                                                                                                                                                                                                                       related to closing
                                                                                                                                                                                                                                                      customer reporting
                                                                                                                                                                                                                                                                                                               Lack of
                                                                                                                                                                                                                                                                                                           accountability to
                                                                                                                                                                                                                                                                                                                                     Accurate DATA
                                                                                                                                                                                                                                                                                                                                        on Swift
                                                                                                                                                                                                                                                                                                                                      reporting not
                                                                                                                                                                                                                                                                                                                                        available
                                                                                                                                                                                                                                                                                                                                                                  System does not flag
                                                                                                                                                                                                                                                                                                                                                                                         Swift
                                                                                                                                                                                                                                                                                                                                                                                      Statements
                                                                                                                                                                                                                                                                                                                                                                                        Sent ?              identification effort, and balanced list of ideas. Utilized
                                                                                                                                                                                                                                                                                                                                                                                                            once the problem is identified to determine the cause.
                                                                                                                                                                                                                                                                                                            analyse data




                                                                                                                                                                        • Reduction in information handoffs
                                                                                                                                                                                                                                                                                                                                                                accounts that are closing
                            San Diego         CODS                                                       Initiator
                                                 Eng-Design                                                                                                                                                                                                                                                                                                      as receiving erroneous
                                  CSCTSO                                                                           CPE
                                              CADS Program Off ice                                     EPDM
                                                                                                                                                                                                                                                                                                                                                                       messages
                                                                  Conf
                                                                PADR iguration
                                                                                                              EPDM
                         -Distribution
              Reproduction                           CODS         Management                                                   Eng-Chief                                                                                                     System maintains reporting level                          Business assumed that
                                                             CVS                                                        EPDM
                                                                                                                                                                                                                                                                                                          aggregate charges
                                                                                                                                                 Pro                                                                                           unless specifically changed
           Reproduction-Copy                               CODS                                                                                Interlink   Eng-Design                                                                                                                                   accurate and does not                                          Current Reporting limited
                                                                                                                                       Pro E
                                                                       Eng-Checking                                             EPDM
                                                                                                                                                                                                                                                                                                       profile costs for different                                     to daily, weekly, monthly
                                                                    CADS
            -
ReproductionPhotographer                                          CODS                                                                                                                                                                                                                                        client usage                                                and not necessarily
                                                                                                                                                                                                                                                                                                                                                                         focused on customer
                                                                                                                                                                                                                                               Closing clients have no RM
                                                                                                                                                                                                                                                                                                                                                                                  needs
Reproduction CADS                                                                                                                                                                                                                                or group responsible for
                                                                                                                                        EPDM
           -Lead                                                     CADSAdmin                                                                      Eng-Systems




                                                                                                                                                                        • Reduction in organizations involved
                                                                                                                                                                                                                                                    exiting procedures
                                                                                                                                       EPDM
                                                                                                                                                  Procurement
                                                                                                                                                                                                                                                                                 Implications of                                                      Message System
                                                                       Saf ety
Reproduction CADS
            -
 Data Entry
                                                                                                                                                                                                                                                                                Closure Process                                                         Limitations
              CADS                                                                                                                    EPDM
     Reproduction                                                   Eng-Systems                                                                Bus-Mgt
                                                                                                                               EPDM
     Data Management                                           PADR
                                                                 CADS                                                                  Eng-Production
                 Process Planning                         PADR      Model Control                                EPDM
                                                                                                                               Material-Planner



                                                                                                                                                                        • Reduction in systems used
                                                                                                                   MAC
                                  CODS              CODS     CODS                               EPDM
                                                                                                          EPDM     PAC
     Denver                                CODS
                                                      MAC        TSO                                                     Site-Rep
                       Eng-D esign Chief
                                       Eng-Production PAC            Release
                                                 Material Planning                             Eng-Labarge




                                                                                                                                                                                                                                   MapITTM



                                                                                                                                                                                                                             Provides ability to view the impact project
                                                                                                                                                                                                                              portfolios have on enterprise improvement
                                                                                                                                                                                                                              levers




                                                                                                                                                                                                                                    - 41 -
                                                 Sample Tools – Industry Best Practice & Statistical Analysis Tools
                                                              Target Operating Models                                                                                                                                                   ValuePrint
                                                                                                                                                                                                                        Is a structured, experience-based Financial Impact
Target Operating Model
                                                        Best Practice banking operating models by product and                                                                                                           Template & Business Case Consolidator Tool designed to
              Front Office
    (Securities, Derivatives, Cash Products)
                                                         product group, covering Front to Back Office                                                                                                                    assist in determining the true business value of
                Front Office
                                                                                                                                                                                                                         investments
  Business Control and
        Support
                                               CFO
                                                        Used to determine functional groups and reorganization
  Core Oper ations             Core Controlling

                                                         opportunities as well as control and process breaks                                                                                                            ValuePrint is used to:
          Client Technology


                                                                                                                                                                                                                            – Systematically identify and analyse investment costs
        Enabling Technology




                                                                                                                                                                                                                              and benefits
                                                                                                                                                                                                                            –   Outline tangible and intangible project benefits,
                                                                                                                                                                                                                                tracking them against defined measures

                                                                   Pareto Analysis                                                                                                                                              Minitab - Metrics Collection
                                                                                                                                                                                                                     Statistical analysis of metrics collected from the business to
                                                        Graphical comparison of the importance of potential root
                                                                                                                                                                                                                     be used for analysis:
                                                         causes of problems/defects. The Pareto Principle is based                                        Scatterplot of MONTH 1, MONTH 5 vs Day of Month



                                                         on the fact that 80% of the problems are caused by 20%                                           100-
                                                                                                                                                                                                     97 (+3*Sigma)   Six Sigma Metrics:




                                                                                                                                 % of Trades Requiring
                                                                                                                                   No Investigation
                                                         of the sources                                                                                    90-

                                                                                                                                                         82 (Mean)
                                                                                                                                                            80-
                                                                                                                                                                                                     88 (Mean)

                                                                                                                                                                                                     80 (-3*sigma)      Defects (incorrect mapping); Errors (repeated mistakes);
                                                        Determine how problems or defects will be categorized;                                            70-                                                           Straight Through Processing rates; Variation within
                                                         Gather data on frequency of problems or defects for each                                          60-
                                                                                                                                                                                                                         process
                                                         of those categories; Establish a scale for the y-axis to                                                                                                    Lean Metrics:
                                                         record the frequency for each category; List each category
                                                         of problem or defect along the x-axis in descending order                                                                                                      Cycle times; Customer service levels (for example., late
                                                         of frequency; Draw bars (columns) to show the frequency                                                                                                         orders, delivery performance); Handoffs in critical
                                                         for each category of problem or defect; Categories with                                                                                                         processes; Distance information travels; Workforce skill
                                                         very small contributions may be combined as “others”                                                                                                            sets; Labor content of work; Percent of employee
                                                                                                                                                                                                                         suggestions implemented; Attrition rate of staff

                                                                                                                      Global INSite

                                                                                                        Is a knowledge management tool used to gather
                                                                                                         benchmarking information globally and focus on specific
                                                                               Deloitte Consulting
                                                                                                         opportunities and issues confronting business
                                                                                                        Global INSite is used to:
                                                                                                            – Obtain industry specific quantitative and qualitative
                                                                                                              performance measurement data
                                                                                                            –   Identify innovative industry best practices to improve
                                                                                                                overall process performance




                                                                                                                            - 42 -
                                        VIII. Appendices

A: Middle Office Work Driver Approach
B: Middle Office Work Diver Sample Output
                 Appendix A: Middle Office Work Driver Overview
       Inputs                                                                  Outputs                                                                                             Description                                  Benefits

                          I. PROCESS MAPS – What we do? How we do it?                                                                                                             Documents infrastructure             Meets regulatory / audit
                               Processes Documented In Hyperknowledge                                                                                                              processes including:                  requirements (e.g.
    Interviews                                                                                                                                                                                                           Mortgages)
                                                                                                                                                                                     -   What are the major
                                                                                                                                                                                         processes, sub                 Available to assess / prep for
                                                                                                                                                                                         processes and activities        deployment analysis

Process / Activity                                                                                                                                                                   -   How do they do them            Leverage for reengineering
   Summary                                                                                                                                                                                                               assessment
                                                                                                                                                                                     -   Why - what they're trying
                                                                                                                                                                                         to achieve



                         II. ACTIVITY SUMMARY – How much resource does it                                                                                                         Understand the relationship          Captures differences by
                                            take to do it?                                                                                                                                                               product line / region at a more
                                                                                                                                                                                   between various
                                        HC by activity / product                                                                                                                                                         extensive level than labor
  Work Driver                                                                                                                                                                      product/functional processes
   Analysis                                                                                                                                                                        and their resource                    allocation study
                                                                                                                                                                                   consumption pattern                  Could be used to adjust
                                                                                                                                                                                  Identify the distribution of          allocations to represent more
                                                                                                                                                                                   processing capacity and               accurately activities
                                                                                                                                                                                   constraints

Fixed vs. Variable
   Assessment             III. INFRA COST DRIVERS & METRICS – What costs
                                      are fixed? What are variable?
                                   What are the major drivers of cost?
                                            For ISIS Dashboard
                                                                                                                                                                                  Identify and document a              Transparency on cost drivers
                                                                                                                                                                                   meaningful set of productivity        by area
                                                                                                                                                                                   measures that accurately
                                                                                                                                                                                                                        Identifies areas that business
                                                                                                                                                                                   describe Infra activities (id
                                                                                                                                                                                                                         can influence costs
                                                                                                                                                                                   key measures 3-5)
                                                                                                                                                                                                                        Identifies areas for
                                                                                                                                                                                  Determine the drivers of time
                                                                                                                                                                                                                         investment
                                                                                                                                                                                   / cost within each activity for
                                                                                                                                                                                   each business or division            Identifies areas of constraint
                                        FIXED VS. VARIABLE ASSESSMENT
                                  40
                                                                                            FX/MM
                                                                                                                                                     Variable HC
                                                                                                                                                     Fixed HC
                                                                                                                                                                                  Establish a set of metrics to
                                  35

                                  30
                                                                                                                                                                                   track performance against
                                  25

                                  20   30.4425

                                  15

                                  10

                                   5
                                                                                                       3.1               1.875
                                         4.575        0.201           2.9435                                                              0.8                0
                                                                       1.17                            1.8                                                 2.72
                                   0                   0.1                                                               0.285             0
                                        1_Trade     2_Position   3_Reconciliation &   4_Shared   5_Client Services   6_Project Work   7_Training &   8_Management &
                                       Processing   Validation       Control          Services                                        Development        Support




                                                                                                                                                                      - 44 -
                  Appendix A: Middle Office Work Driver Scope
The “In-Scope” headcount represents 71% of the Global Middle Office June 2004 headcount and 79% of the Americas
and Europe June 2004 headcount

         Middle Office June 2004                                                                                                  Asia
         Actual Headcount                                                                                                         Europe
                                                                                                                                  Americas


                          1,252                     131

                           131                      131                     13                     222
                                                                                                  145

                                                                                                   77                               886

                           665

                                                                                                                                    509




                           456                                                                                                      377




                        ISIS/ORM                   Asia                  Regional              Out of Scope &    Zero HC/Closed   In-Scope
                                                                                               Adjustments1
                                                                                             (SCM/Mgmt/ Other)


Cost Centers               228                      64                     11                       24                70             59



1Adjustments   includes headcount changes that occurred post June 2004
                                                                                    - 45 -
                      Appendix A: Middle Office Work Driver Scope – Cost Center Summary
               Sub Cluster                        Contact                                          Americas Cost Center                          HC   Sub Cluster              Contact                                      Europe Cost Center                       HC
                                               Adam Johnson                 D.0P52 - CTRS NY FID1 CCnDIST DIST ASST                              7                                                   D.29H - CTRS FID GMM LON BRANCH                                 17
                                                                                                                                                                           Charles Fitzgerald
                                                Art Leonetti                D.0N76 - CTRS NY FID LEVERAGED FINANCE (HY)                          3                                                   D.25Y - CTRS LDN FID n SPG CAT [25Y]                            14
                                                       Michael Gallagher    D.0P49 - CTRS NY FID IRP BOND                                        6                                                   D.25H - CTRS FID IRP CSFB Europe Ltd                            12
                                 Art Leonetti                                                                                                                              Charles Fitzgerald
                                                         James Farrell      D.0R58 - PC GLOBAL REPORTING & ANALYSIS                              25                                                  D.24H - CTRS FID Credit n Dist CSFB Eu                          10
                                                                            D.0P55 - NY FID LISTED DERIVATIVES                                   2                                                   D.22Y - CTRS SPG EMG CSFB Europe Ltd                            16
                                                                                                                                                         FID PC
                  FID PC                       James Langan                 D.0N76 - CTRS NY FID LEVERAGED FINANCE (LOANS)                       4                           James Whale             D.H5R - EMG- LONDON(CSFBi)                                       7
                                                                            D.AJ55 - Ctrs NY FID Syndicate Acctg                                 4                                                   D.24Y - CTRS Treasury CSFBi [24Y]                                3
                                                                            D.0K52 - CTRS NY TRES                                                11                                                  D.26Y - CTRS Treasury London Branch                              2
                                Sal Sorce / Tracey Cerone/Kim Cuozzo
                                                                            D.0P53 - CTRS NY FID MONEY MARKETS                                   4                            Ian Herrod             D.71C - CTRS Treasury CSFB Europe Ltd                            5
                                                                            D.0060 - PC NY FID 1EMG LATAM-NY                                     3                                                   D.AY3 - CTRS FID 1 EMG MOSCOW [AY3]                              2
                                               Shaun Williams
                                                                            D.F84HX2A - NY FID CTRS EMG                                          6                          Chris Peratides          D.82H - CTRS SPG OTC CSFBi [82H]                                30
                                                Adrian Kemp                 D.F87HX2A - EDCU-FP CTRS                                             14                                                  D.H7Z - OTC EDCU Middle Office                                   9
                                                John Sweeny                 D.0021 - Equity Middle Office                                        8                                                   D.R80 - OTC Equity Finance Settlements                           9
                                                                                                                                                                             Kevin Borrett
                                           Virgilio Montano                 D.0A67 - CTRS NY EQUITIES                                            5                                                   D.23N - CTRS EDCU CSFB Europe Ltd                                8
                                                                                                                                                      EQUITIES PC
                                                Bill Wiegand                D.0Q30 - CTRS NY EDCU (Reporting)                                    4                                                   D.P8K - PC EQUITIES PRIME SERVICES EXC                           5
                Equities PC
  IN SCOPE                                     Blaise Jenkins               D.0Q30 - CTRS NY EDCU (EDCU/M&A)                                     1                                                   D.23Y - CTRS EDCU CSFBi [23Y]                                    5
                                                                                                                                                                             Mike Harvard
(AMERICAS &                                     Shane Durkin                D.0Q30 - CTRS NY EDCU(Index/Risk Arbitrage ; Program Trading)        4                                                   D.F13 - CTRS Equities Cash CSFB Europe                          11
  EUROPE)                           Shane Durkin / Stephen Bailey           D.0Q30 - CTRS NY EDCU (Prime Services)                               7                            Paul Tickle            D.P7K - PC EQUITIES MANAGEMENT                                   7
                                                 Rob Austin                 D.0Q30 - CTRS NY EDCU (Convertible Bonds)                            3                                                   D.81H - CTRS IBD London Branch [81H]                             4
                                                                                                                                                        IBD PC               Michael Kelly
                                           John Goodnough                   D.0052 - CTRS NY IBD BROKER/DEALER                                   19                                                  D.F14 - CTRS IBD Europe Ltd [F14]                                8
                  IBD PC
                                            Gregg Krieger                   D.0N74 - CTRS NY IBD BRANCH/CORP BANKNG                              7                                                   D.59H - CTRS FID IRP Exotic CSFBi                               19
                                                                                                                                                                             Ahmed Kubba
                 DSG PC                          Siu-Pak Ho                 D.F49HX2A - Ny Fid Prod Ctrl Interest Rate                           18     DSG PC                                       D.80H - CTRS FID IRP Vanilla CSFBi                              19
                                                   Eileen Yin               D.FW14X2A - NY OTC Ops (Documentation)                               31                            Amin Bilal            D.20H - CTRS FID Europe CSFBi [20H]                             41
                                 Augustine
                                                   Tom Decker               D.FW14X2A - NY OTC Ops (Settlement)                                  21                        Gordon McDermid           D.55H - Mgmt/GLC/Business Mgmt                                  16
                 DSG Ops         Vargetto
                                                   Donatina Trotter         D.FW14X2A - NY OTC Ops (Watson)                                      17                                Dom Amura         D.C7K - OTC Documentation                                       75
                                                Greg Florek                 D.AM57 - NY OTC Middle Office                                        18     DSG Ops     Karen Newton Steve Hunter        D.W46 - OTC Settlements/CFGs                                    65
                                                   Tang / Marcello / Tran   D.0U66 - CTRS NY FID1 CCnDIST QNT SUPP                               11                                Dave Watson       D.61H - OTC Front Office Support Group                          31
               Mortgage PC       Willie Pest
                                                   Wozencroft / Honkanen D.0639 - CTRS NY FID1 CCnDIST QNT SUPP (ABD, CDO, RMBS)                 13                           Greg Florek            D.H2U - OTC Fixed Income Middle Office                          17
                                               Frank Malarkey            D.0575 - Residential Mortgage Securitie                                 39                                David Weeks       D.75H - FLP Product Control                                     18
                Mortgage
                                                Tom Camoia               D.AB28 - Residential Whole Loans                                        61     DSG FLP     Stephen Axbey Stewart De Carle   D.E7U - FLP Middle Office                                       18
                Operations
                                                 Betty Verri                D.AI19 - Mortgages Reporting                                         3                                 Edel McGinley     D.T1A - FLP Transaction Management                               6
                                                                                                                   AMERICAS INSCOPE TOTAL    377                                                                                              EUROPE INSCOPE TOTAL   509
                                                                                                                                                                                                                                                     TOTAL INSCOPE   886

                 Reason                                                     Americas Cost Center                                                 HC     Reason                                              EMEA Cost Center                                         HC

                              D.AK50952 - CTRS FID Mexico Broker Dealer                                                                                             D.0895033 - CTRS ZUR TRES                                                                         1
                 Regional     D.AN31953 - PC - Mexico                                                                                             2                 D.0895048 - CTRS ZUR REPTG                                                                        2
                                                                                                                         AMERICAS REGIONAL        2                 D.0895049 - CTRS ZUR EQUITIES/EDCU                                                                2
                            D.0W33 - PC SCM                                                                                                      28                 D.0895053 - CTRS ZUR IBD                                                                          3
                            D.AN78 - Mortgage Change Program                                                                                      6     Regional    D.0895057 - CTRS ZUR FIDIRP
                            D.R8K - America DCP                                                                                                   6                 D.0895418 - CTRS ZUR FID FOREIGN EXCHANGE                                                         3
                                                                                                                                                                    D.0895419 - CTRS ZUR FID MONEY MARKETS
               SCM / MGMT / D.0P57 - CTRS NY FID1 MGMT                                                                                            7
                            D.0D92 - Client Pricing and valuations                                                                                4                 D.A045X14 - CTRS FID 1 EMG MOSCOW
                  OTHER
                            D.0P58 - CTRS NY Reporting                                                                                            1                 D.C6G - CONTROLLERS ISTANBUL
                            D.BR27B00 - BUS UNIT CONTOL RETEN POOL                                                                               10                                                                                               EUROPE REGIONAL    11
                            D.F86HX2A - Ny Fid Prod Ctrl Quantitative                                                                             6                D.49I - CTRS LONDON US GAAP                                                                         2
                                                                                                        AMERICAS SCM / MGMT / OTHER              68                D.55U - PC SCM                                                                                     22
                                                                                              AMERICAS POST JUNE 2004 HC ADJUSTMENT              -9                D.72H - LL/Graduate Program - OTC                                                                   2
                                                                                                                                                                   D.85T - CTRS LDN FID1MGMT PROJECTS                                                                 14
OUT OF SCOPE                                                                                                                                                       D.92N - DSG Ops Management                                                                          4
                                                                                                                                                                   D.C7R - OTC Projects                                                                                6
                                                                                                                                                                   D.J1K - Europe OTC Derivs Chnge Prgmme                                                             49
                                                                                                                                                      SCM / MGMT / D.J6A - FLP Strategic & Legacy                                                                     14
                                                                                                                                                                   D.P1T - PSESP Historic                                                                              8
                                                                                                                                                         OTHER
                                                                                                                                                                   D.P9S - PSESP Current                                                                               9
                                                                                                                                                                   D.22H - Infrastructure mgt and admin                                                                4
                                                                                                                                                                   D.47I - CTRS FID Management CSFB Europ                                                              6
                                                                                                                                                                   D.67T - FLP Management & Control                                                                    5
                                                                                                                                                                   D.42T - CTRS LDN REPTG ARC [42T]                                                                    1
                                                                                                                                                                   D.44T - CTRS LDN REPTG CUST PRIC [44T]                                                              2
                                                                                                                                                                   D.76H - CTRS LDN FID1MGMT QUANT SUPP                                                                6
                                                                                                                                                                                                                                  EUROPE SCM / MGMT / OTHER          154
                                                                                                                                                                                                                      AMERICAS POST JUNE 2004 HC ADJUSTMENT           9
                                                                                                                                                                                                                                 OUT OF SCOPE REGIONAL TOTAL         13
                                                                                                                                                                                                                       OUT OF SCOPE SCM / MGMT / OTHER TOTAL         222
                                                                                                                                        - 46 -
                         Appendix A: Middle Office Work Driver Analysis Overview
The middle office work driver database allows a variety of cuts on the data facilitating detailed analysis and comparison across the
multiple views

                                                                                                                                                                                                              Data Views
  Sample Database Components
                                                                                                                                                                                                               Organizational
     ID     Division      Region
                                      Cost
                                     Center
                                               Activity
                                               Details
                                                             PC Major
                                                             Function
                                                                              PC Sub Process          Cost Center Activity
                                                                                                                                  1)
                                                                                                                                Fixed
                                                                                                                                           3)
                                                                                                                                        Variable
                                                                                                                                                   Grand
                                                                                                                                                   Total
                                                                                                                                                              Cost Driver
                                                                                                                                                                                High Level
                                                                                                                                                                                Cost Driver
                                                                                                                                                                                                 Medium
                                                                                                                                                                                               Level Cost         - Derivatives PC (Equities, FID and
                                      Desc                                                                                       HC       HC                                      Group       Driver Group

          Equities/IBD              EDCU FP    Equities     Create Trial   Create complete trial    Ensure Integrity of                                    # Books &
                                                                                                                                                                                                                    FLP)
    564                  Americas                                                                                                         0.50     0.50
          Product                   CTRS      Derivatives   Balance        balance                  overnight process                                      Reliability of FO   books          # Books

                                                                                                                                                                                                                  - Cash PC (FID and Equities)
          Equities/IBD              EDCU FP    Equities     Create Trial   Create complete trial    Ensure Integrity of                                    No fixed                           No Fixed
    564                  Americas                                                                                               0.00               0.00
          Product                   CTRS      Derivatives   Balance        balance                  overnight process                                      component           Other          Component
                                                                           Reconciliation's &
        Equities/IBD                           Equities
                                    EDCU FP               Validation &     resolution between FO    Complete FOBO                                          # Books; #

                                                                                                                                                                                                                  - IBD PC
    565 Product          Americas             Derivatives                                                                                 3.50     3.50
                                    CTRS                  Control          systems and non-         reconciliation (including                              Positions;
        Control                                   PC
                                                                           Settlement systems       booking issue resolution)                              Trading Volume      books          # Books
                                                                           Reconciliation's &
        Equities/IBD                           Equities
                                                                                                    Complete FOBO
                                                                                                                                                                                                                  - Structured PC
                                    EDCU FP               Validation &     resolution between FO
    565 Product          Americas             Derivatives                                                                       0.00               0.00
                                    CTRS                  Control          systems and non-         reconciliation (including                              No fixed                           No Fixed
        Control                                   PC
                                                                           Settlement systems       booking issue resolution)                              component           Other          Component
          Equities/IBD                         Equities                    Collation of data from                                                          # Books; #
                                  EDCU FP                   Create Trial
                                                                                                                                                                                                                  - Operations (Derivatives, Mortgages,
    566   Product        Americas             Derivatives                  fragmented systems to                                          0.50     0.50    Positions;
                                  CTRS                      Balance
          Control                                 PC                       one source               Post Subledger toTREX                                  Trading Volume      books          # Books
          Equities/IBD                         Equities                    Collation of data from
                                    EDCU FP                 Create Trial
    566   Product
          Control
                         Americas
                                    CTRS
                                              Derivatives
                                                  PC
                                                            Balance
                                                                           fragmented systems to
                                                                           one source               Post Subledger toTREX
                                                                                                                                0.00               0.00    No fixed
                                                                                                                                                           component           Other
                                                                                                                                                                                              No Fixed
                                                                                                                                                                                              Component
                                                                                                                                                                                                                    FLP)
          Equities/IBD              EDCU FP    Equities     Validation &                                                                                   # Books; #
    567                  Americas                                          P&L validation                                                 1.00     1.00

                                                                                                                                                                                                               Regional
          Product                   CTRS      Derivatives   Control                                 Complete P&L Validation                                Positions;          books          # Books
          Equities/IBD              EDCU FP    Equities     Validation &                                                                                   No fixed                           No Fixed
    567                  Americas                                          P&L validation                                       0.00               0.00
          Product                   CTRS      Derivatives   Control                                 Complete P&L Validation                                component           Other          Component
          Equities/IBD              EDCU FP    Equities     Validation &   Front office & back      Conduct Front office

                                                                                                                                                                                                                  - Americas
    568                  Americas                                                                                                         0.25     0.25
          Product                   CTRS      Derivatives   Control        office spreadsheet       spreadsheet improvement                                # Books             books          # Books
          Equities/IBD              EDCU FP    Equities     Validation &   Front office & back      Conduct Front office                                   No fixed                           No Fixed
    568                  Americas                                                                                               0.00               0.00
          Product                   CTRS      Derivatives   Control        office spreadsheet       spreadsheet improvement                                component           Other          Component
                                                                                                    Complete Price Testing
                                                                                                                                                                                                                  - Europe
          Equities/IBD              EDCU FP    Equities     Validation &
    569                  Americas                                          Price testing                                                  1.32     1.32
          Product                   CTRS      Derivatives   Control                                 (monthly)                                              # Positions         Positions      # positions
          Equities/IBD              EDCU FP    Equities     Validation &                            Complete Price Testing                                 Reporting                          Report
    569                  Americas                                          Price testing                                        0.33               0.33
          Product                   CTRS      Derivatives   Control                                 (monthly)                                              Requirements        Reports        Development

                                                                                                                                                                                                               Functions / Activities (three grouping
          Equities/IBD              EDCU FP    Equities     Validation &                            Conduct Account
    570                  Americas                                          Account ownership                                              0.25     0.25
          Product                   CTRS      Derivatives   Control                                 ownership activities                                   # Books             books          # Books
          Equities/IBD              EDCU FP    Equities     Validation &                            Conduct Account                                        No fixed                           No Fixed
    570                  Americas                                          Account ownership                                    0.00               0.00

    571
          Product
          Equities/IBD
                         Americas
                                    CTRS
                                    EDCU FP
                                              Derivatives
                                               Equities
                                                            Control
                                                            Validation &
                                                                           Model validation
                                                                                                    ownership activities
                                                                                                    Complete Model
                                                                                                                                          0.25     0.25
                                                                                                                                                           component           Other          Component
                                                                                                                                                                                                                levels)
          Product                   CTRS      Derivatives   Control                                 Validation (2 monthly)                                 # trades            Trades         # trades

                                                                                                                                                                                                                  - PC Major Function: Validation &
          Equities/IBD              EDCU FP    Equities     Validation &                            Complete Model                                         No fixed                           No Fixed
    571                  Americas                                          Model validation                                     0.00               0.00
          Product                   CTRS      Derivatives   Control                                 Validation (2 monthly)                                 component           Other          Component
          Equities/IBD              EDCU FP    Equities     Validation &   Structured Trade         Conduct Structured Trade
    572                  Americas                                                                                                         1.80     1.80

    572
          Product
          Equities/IBD
                         Americas
                                    CTRS
                                    EDCU FP
                                              Derivatives
                                               Equities
                                                            Control
                                                            Validation &
                                                                           Reviews
                                                                           Structured Trade
                                                                                                    Reviews (2 monthly)
                                                                                                    Conduct Structured Trade
                                                                                                                                0.20               0.20
                                                                                                                                                           # trades            Trades         # trades
                                                                                                                                                                                                                    Control; Reporting; etc
          Product                   CTRS      Derivatives   Control        Reviews                  Reviews (2 monthly)                                    Administration      Employees      # Admin

                                                                                                                                                                                                                  - PC Sub Process: Price Testing;
          Equities/IBD                         Equities     Enrichments                             Complete Provision/
                                    EDCU FP                                Provisions & Valuation
    573   Product        Americas             Derivatives   &                                       Valuation adjustments                 0.36     0.36                        Breaks /
                                    CTRS                                   adjustments
          Control                                 PC        Adjustments                             (monthly)                                              # Adjustments       Exceptions     # adjustments

    573
          Equities/IBD
          Product        Americas
                                    EDCU FP
                                    CTRS
                                               Equities
                                              Derivatives
                                                            Enrichments
                                                            &
                                                                           Provisions & Valuation
                                                                           adjustments
                                                                                                    Complete Provision/
                                                                                                    Valuation adjustments       0.04               0.04                                                             FOBOs; Sox; etc
          Control                                 PC        Adjustments                             (monthly)                                              Administration      Employees      # Admin

                                                                                                                                                                                                                  - Cost Center Activity: Generate
                                                                                                                                                                                                                    FOBO report; Acquire market prices
                                                                                                                                                                                                               Cost Driver (three grouping levels)
                                                                                                                                                                                                                  - High: Trades; Reports; Breaks; etc
                                                                                                                                                                                                                  - Medium: # Reconciliations; # tickets;
                                                                                                                                                                                                                    # positions; etc
                                                                                                                                                                                                                  - Detailed: Portfolio size; # FOBO
                                                                                                                                                                                                                    Breaks, # system updates, etc
                                                                                                                                                                      - 47 -
                   Appendix B: Middle Office Activity Summary
      Middle Office Activities (886 FTEs)                                                                          Activity Descriptions

        Trade                                                     135 /        Trade         Trade capture (manual & automated), document management, trade confirmation, process
                    19%                     81%
    Processing                                                    15%        Processing      conversions, cash and security management, etc

                                                              129 /                          FOBOs, structured trade reviews, BOBOs, journal entry review, other reconciliations, hedge
  Data Integrity      32%                     68%
                                                              15%           Data Integrity
                                                                                             accounting documentation, front office and back office spreadsheet control

        Client                                               128 /                           Inquiries and support – internal & external clients, external client cash transfers & balances,
                      30%                   70%                            Client Services
      Services                                               14%                             maintain client relationships, etc


     Validation           55%           45%           101 / 11%                              Price testing, account ownership, P&L validation, non-trading data validation, model
                                                                             Validation
                                                                                             validation

  Management                                                                Management
                          59%         41%     80 / 9%                                        Management activities, training, administrative, BCP & risk management, etc
    & Support                                                                & Support

                                                                                             MIS reporting, consolidations & group reporting, regulatory reporting, control reporting,
     Reporting           64%         36%      77 / 9%                        Reporting
                                                                                             customer information delivery, ad hoc reporting, etc


       Projects     39%         61%         70 / 8%                           Projects       New business activities, Sarbanes Oxley, strategic projects, lights on projects


   Enrichments                                                              Enrichments      Provisioning & valuation adjustments, GAAP/accounting adjustments, expense allocation,
                    51%        49%    55 / 6%
 & Adjustments                                                             & Adjustments     etc
                           47%
      Financial                                                               Financial
                    53%          39 / 4%                                                     Clean P&L. legal entity analysis, expense analysis, P&L analysis
      Analysis                                                                Analysis
                      64%
      Position                                                                Position       Confirm & process firm cash positions (NOSTRO), confirm & process trade positions
                           21 / 2%
     Validation                                                              Validation      (DEPOT), monitor asset allocation ratios
                    36%
                      59%
       Shared                                                                 Shared         Client account maintenance, corporate actions, process mandatory & voluntary events,
                           21 / 2%
      Services                                                                Services       manage securities borrowing & lending events
                   41%
                     50%
   Create Trial                                                             Create Trial
                         14 / 2%                                                             Data collection, create trial balance (P&L)
      Balance                                                                Balance
                    50%
                     48%
   Marketing &                                                              Marketing &
                         13 / 1%                                                             Counterparty valuation statements, sales credits
        Sales                                       Fixed: 41%                Sales
                   52%
                   26%                              Variable: 59%
  FX Hedging /                                                            FX Hedging / P&L
                     4 / 0%                                                                  FX hedging, P&L remittance
P&L Remittance                                                               Remittance
                   74%
                                                                                              - 48 -
                   Appendix B: Middle Office Cash Product Control Activity Summary
          Cash PC Activities (209 FTEs)                                                                              Variable Cost Drivers

                                                                   38 /
     Reporting                    74%                     26%                               Americas Activity Drivers                            Europe Activity Drivers
                                                                   18%
                                                                                             Drivers                 FTEs    %                   Drivers                 FTEs    %
                                                             34 /            1 # Trades                              6.8    14%    # Books                               11.7   34%
     Validation             57%                  43%
                                                             16%
                                                                             2 # Projects                            5.7    12%    # Reconciliation Breaks               4.8    14%
                                                                             3 # Reconciliation Breaks               4.6    10%    # Employees                           2.9    8%
                                                            33 /
  Data Integrity           53%                47%
                                                            16%              4 # IPOs & Secondary Offerings          3.7    8%     # Projects                            2.8    8%
                                                                             5 # FO Requests                         3.6    8%     # Trades                              2.7    8%
       Projects           50%           50%            28 / 13%                             Top 5 Variable Drivers   24.4   51%                 Top 5 Variable Drivers   24.9   73%
                                                                                            Other Variable Drivers   23.4   49%                 Other Variable Drivers   9.4    27%
  Management                                                                                Total Variable Drivers   47.7   49%                 Total Variable Drivers   34.4   31%
                          65%         35%   19 / 9%
    & Support                                                                                  Total Fixed Drivers   50.7   51%                    Total Fixed Drivers   76.4   69%
                                                                                                     Total Drivers   98.4   100%                         Total Drivers 110.7    100%
   Enrichments
                         67%      33% 18 / 9%
 & Adjustments

      Financial                                                                                     Front Office Opportunities To Influence Cost
                    60%         40%    13 / 6%
      Analysis
                                                                           4.1 FTEs are driven by Front Office requests/activities
   Marketing &      51% 49% 11 / 5%                                           - 1.7 FTEs conduct front office reporting with 93% of these heads being variable
        Sales
                      48%
                                                                              - 2.4 FTEs driven by other front office activities such as sales credit calculations, P&L
   Create Trial
                   52%       6 / 3%
                                                                                analysis, and WSS brokerage calculation and allocation
      Balance
                                                                           11.5 FTEs are currently performing FOBO reconciliations and investigating breaks
                      33%
        Client
                        3 / 2%
      Services
                    67%
                      9%
  FX Hedging /
                      3 / 2%
P&L Remittance
                   91%
                     39%
       Shared
                      2 / 1%
      Services
                    61%
                     83%
         Trade
                    1 / 1%
    Processing                                   Fixed: 61%
                    17%
                                                 Variable: 39%


                                                                                                - 49 -
                   Appendix B: Middle Office Derivatives Product Control Activity Summary
      Derivatives PC Activities (204 FTEs)                                                                Variable Cost Drivers

                                                       68 /
  Data Integrity     18%               82%                                       Americas Activity Drivers                            Europe Activity Drivers
                                                       33%
                                                                                  Drivers                 FTEs    %                   Drivers                 FTEs     %

     Validation      41%         59%    35 / 17%                 1 # Books                                19.7   67%    # Trades                              34.7    32%
                                                                 2 # Projects                             3.4    11%    # Books                               18.9    18%
                                                                 3 # Trades                               2.1    7%     # Reconciliation Breaks               16.1    15%
       Projects    37% 63%        22 / 11%
                                                                 4 # Positions                            2.0    7%     # Portfolio Positions                 6.5     6%
                                                                 5 # New Business Initiatives             0.9    3%     # Projects                            5.8     5%
      Financial
                   37% 63% 18 / 9%                                               Top 5 Variable Drivers   28.1   95%                 Top 5 Variable Drivers   82.0    76%
      Analysis
                                                                                 Other Variable Drivers   1.5    5%                  Other Variable Drivers   25.9    24%
   Enrichments                                                                   Total Variable Drivers   29.6   75%                 Total Variable Drivers 107.8     65%
                   33%67% 16 / 8%
 & Adjustments                                                                      Total Fixed Drivers   9.7    25%                    Total Fixed Drivers   56.9    35%
                                                                                          Total Drivers   39.4   100%                           Total Drivers 164.8   100%
     Reporting     49%51% 15 / 7%

                     52%
  Management                                                                             Front Office Opportunities To Influence Cost
                           11 / 5%
    & Support
                    48%                                        1.3 FTEs are driven by Front Office reporting requests
                     71%
        Client                                                 24.5 FTEs are conducting structured trade review activities
                        7 / 3%
      Services
                    29%                                        21.3 FTEs are currently performing FOBO reconciliations and investigating breaks
                     53%
   Create Trial
                       6.1 / 3%
      Balance
                   47%
                     47%
         Trade
                       4 / 2%
    Processing
                    53%
                     63%
       Shared
                       2 / 1%
      Services
                   37%
                     79%
  FX Hedging /
P&L Remittance        1 / 0%
                    21%
                    100%
   Marketing &
                     0 / 0%
        Sales                                 Fixed: 33%
                                              Variable: 67%


                                                                                     - 50 -
                  Appendix B: Middle Office Operations Activity Summary
       Operations Activities (411 FTEs)                                                              Variable Cost Drivers

        Trade                                       130 /
                    17%              83%                                    Americas Activity Drivers                            Europe Activity Drivers
   Processing                                       32%
                                                                             Drivers                 FTEs    %                   Drivers                 FTEs    %
       Client
                    29%              71%        115 / 28%     1 # Trades                             40.8   33%    # Trades                              68.3   45%
     Services
                                                              2 # Structured Transactions            32.1   26%    # Unagreed Cash Flows                 10.4   7%

 Management                                                   3 # Reconciliation Breaks              7.7    6%     # Open Market Issues                  10.2   7%
                   62% 38% 39 / 9%
   & Support                                                  4 # Adhoc Queries                      5.6    5%     # Projects                            7.5    5%
                                                              5 # Clients                            4.8    4%     # Adhoc Queries                       6.9    5%
     Position
                  44% 56% 19 / 5%                                           Top 5 Variable Drivers   91.0   74%                 Top 5 Variable Drivers 103.3    68%
    Validation
                                                                            Other Variable Drivers   32.2   26%                 Other Variable Drivers   47.6   32%
  Enrichments                                                               Total Variable Drivers 123.2    65%                 Total Variable Drivers 150.9    68%
                  52%48% 19 / 5%
& Adjustments                                                                  Total Fixed Drivers   67.1   35%                    Total Fixed Drivers   69.8   32%
                    56%                                                              Total Drivers 190.4    100%                         Total Drivers 220.7    100%
 Data Integrity   44%      17 / 4%

                     61%
      Shared                                                                        Front Office Opportunities To Influence Cost
                          17 / 4%
     Services
                   39%                                       1.1 FTEs are driven by Front Office OTC trade documentation queries
                    55%
    Reporting           16 / 4%

                   45%
                    74%
      Projects          15 / 4%
                  26%
                    5%
    Validation       4 / 1%
                   95%
                    54%
  Create Trial
                    2 / 1%
     Balance
                  46%




                                           Fixed: 33%
                                           Variable: 67%


                                                                                - 51 -
IX. Attachment 1: Supplier Assessment Questionnaire
               IX. Attachment 2: CSFB Standard Agreement

We are pleased to present our bid package for consideration. With regard to
the contract terms and conditions proposed in the RFP, we are currently in
the process of negotiating a Master Services Agreement ("MSA") with CSFB
which terms and conditions will govern all of our services provided to CSFB.
Our experience has indicated that almost without exception we have been
able to reach agreement with each of our clients that has awarded us an
engagement. In the vast majority of these cases, we have had some
concerns over the proposed terms and conditions included in the request for
proposal, however, in this case if we are awarded this engagement, we
intend to negotiate in good faith with CSFB to reach an agreement on the
MSA as expeditiously as possible. In this regard, we believe that the MSA as
finally drafted and agreed will be appropriate for this engagement.

				
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