In the 2022 financial year, the bank suffered its highest loss since the financial crisis at CHF 7.3 billion.
(Photo: Reuters)
Zurich Long-time Credit Suisse shareholder Harris Associates has left the crisis-ridden Swiss bank completely. Harris began reducing the stake in October and has now completely divested itself of it, Harris vice chairman David Herro told the Financial Times on Sunday.
According to the newspaper, Harris owned up to 10 percent of CS shares last year. “The question arises as to the future of the business. There have been big outflows from wealth management,” Herro said.
In the past few months, Credit Suisse has struggled with a loss of customer confidence and in the 2022 financial year it made its highest loss since the financial crisis at CHF 7.3 billion.
Harris told the Financial Times there are many other ways to invest. “Rising interest rates mean many European financial stocks are going the other way. Why invest in something that burns capital when the rest of the sector is now generating it?”
Regarding the restructuring of Credit Suisse, he said the plan to restructure the investment bank was a noble cause. However, it is cumbersome and far more expensive in terms of cash burn than we anticipated. (…) We were also not satisfied with the proceeds we received from the sale of securitized products.”
When asked about the interview, Credit Suisse said the bank was ahead of its plan and had clear strategic goals. “We are fully focused on successfully executing our plan and achieving our goals to ensure the new Credit Suisse creates sustainable value for all our stakeholders.”
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