(Reuters) – Harris Associates, a major shareholder in Credit Suisse, has sold its entire stake in the bank in recent months, an executive at the Chicago-based firm said on Sunday, without giving a reason. of this decision.
David Herro, vice chairman and chief investment officer of Harris Associates, however, told the Financial Times earlier that the firm had lost patience with Credit Suisse’s strategy to stem persistent losses and customer flight.
Remaining loyal to the Swiss bank despite a series of scandals within it, Harris Associates revealed last August that it had a stake of around 10% in Credit Suisse, before reducing it to 5% in January.
Harris Associates began limiting its exposure last October after Credit Suisse raised 4 billion Swiss francs from investors and when Saudi National Bank ousted it as the top investor, David Herro told the Financial Times, who reported. first reported the sale by Harris Associates of its entire stake.
“There is a question about the future of the franchise. There have been significant outflows from wealth management,” the Harris Associates vice chairman said, according to comments reported by the Financial Times.
Credit Suisse reported its heaviest annual loss since the 2008 global financial crisis on February 9, weighed down by scandals and unprecedented customer withdrawals, and warned it would face another “substantial” loss. ” This year.
“We have many other options to invest,” added David Herro. “Rising interest rates mean a lot of European financials are heading in a different direction. Why go for something that burns capital when the rest of the sector is now generating it?”
Credit Suisse said in a statement emailed to Reuters: “We are ahead of our plan and have clear strategic objectives.”
“We are focused on successfully executing our plan and achieving our goals to ensure that the new Credit Suisse creates lasting value for all stakeholders,” she added.
Switzerland’s second-largest bank has also begun a major business overhaul, cutting costs and jobs, including creating a separate business for its investment bank under the CS First Boston brand.
(Gokul Pisharody and Elisa Martinuzzi report, with Akriti Sharma and Juby Babu; French version Benjamin Mallet, edited by Jean Terzian)
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