Credit Suisse – major shareholder exits – Economy

Long-time Credit Suisse shareholder Harris Associates has left the crisis-ridden Swiss bank completely. Harris began reducing its stake in October and has now completely divested itself of it, Harris vice-president David Herro said Financial Times. According to the newspaper, Harris owned up to 10 percent of CS shares last year. “It’s a question of 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 said the Financial Times, there are many other ways to invest. “Rising interest rates mean a lot of European financials 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. It is “but cumbersome and far more expensive in terms of cash burn than we anticipated.”

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