Advertisement
Advertisement

Credit Suisse top shareholder asks for investment bank overhaul – Bloomberg News

By:
Reuters
Published: Aug 19, 2022, 11:53 UTC

(Reuters) - Credit Suisse Group AG's top shareholder Harris Associates has asked the Zurich-based lender to fix its investment bank unit or seek other options, Bloomberg News reported on Friday.

Logo of Credit Suisse is seen in Zurich

(Reuters) – Credit Suisse Group AG’s top shareholder Harris Associates has asked the Zurich-based lender to fix its investment bank unit or seek other options, Bloomberg News reported on Friday.

Harris Associates last week disclosed a stake of more than 10% in Switzerland’s second-largest bank, after previously holding 5.2%.

If Credit Suisse is unable to find ways for the investment bank business to earn sustainable returns in the next year or two, it would have to explore other options including a sale, spin-off or a merger, said David Herro, the chief investment officer of Harris Associates, in an interview to Bloomberg TV.

Credit Suisse declined to comment and Harris Associates did not immediately respond to a request for comment.

The company’s investment bank recorded a pretax loss of 1.12 billion Swiss francs ($1.17 billion) in the second quarter and was expected to lose money again this quarter before business picks up by year’s end.

In July, the troubled lender named asset management boss Ulrich Koerner as its new chief executive officer. He was tasked with scaling back investment banking and cutting more than $1 billion in costs to help the bank recover from a string of scandals and losses.

($1 = 0.9564 Swiss francs)

(Reporting by Nivedita Hazra in Bengaluru; Editing by Devika Syamnath)

About the Author

Reuterscontributor

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV. Learn more about Thomson Reuters products:

Did you find this article useful?

Advertisement