One of Credit Suisse’s biggest investors sells its entire stake in the scandal-hit bank
A major Credit Suisse shareholder has sold its entire stake in the scandal-hit bank.
US investment manager Harris Associates at one point owned 10% of Credit Suisse – but Vice Chairman David Herro said he started reducing exposure in October after Credit Suisse raised 3.6 billion sterling from investors and when the Saudi National Bank supplanted it as the top investor.
“There is a question about the future of the franchise. There have been significant outflows from wealth management,” Herro told the Financial Times.
Sell: US investment manager Harris Associates at one point owned 10% of Credit Suisse – but vice chairman David Herro said he started reducing exposure in October
“We have many other options to invest,” he added. “Why go for something that burns capital when the rest of the industry is now generating it?”
Credit Suisse said: “We are ahead of our plan and have clear strategic objectives.”
The bank, Switzerland’s second largest, has also embarked on a major overhaul of its business, cutting costs and jobs to revive its fortunes, including creating a separate business for its investment bank under the CS First Boston brand.
Last month, Credit Suisse announced its biggest annual loss since the 2008 global financial crisis after shaken customers withdrew billions from the bank.
He warned of another “substantial” loss this year.