Top Credit Suisse investor sells entire stake in the scandal-hit bank
One of Credit Suisse’s largest investors is selling its entire stake in the scandal-hit bank
One of Credit Suisse’s largest shareholders has sold its entire stake in the scandal-hit bank.
U.S. investment manager Harris Associates at one point owned 10 percent of Credit Suisse, but deputy chairman David Herro said it began reducing its exposure in October after Credit Suisse raised £3.6bn from investors and the Saudi National Bank supplanted as the main investor.
“There is a question about the future of the franchise. There has been a big outflow from asset management,” Herro told the Financial Times.
Sell: U.S. investment manager Harris Associates owned 10% of Credit Suisse at one point, but deputy chairman David Herro said it began reducing its exposure in October
“We have many other options to invest,” he added. “Why choose something that burns capital when the rest of the industry is generating it now?”
Credit Suisse said: “We are ahead of our plan and have clear strategic objectives.”
The bank, Switzerland’s second largest, has also begun a major overhaul of its operations, cutting costs and jobs to revive its fortunes, including creating a separate venture for its investment bank under the brand CS First Boston.
Credit Suisse last month reported its biggest annual loss since the 2008 global financial crisis after rattling customers took billions from the bank.
It has warned of a further ‘substantial’ loss this year.