Once the largest shareholder of Credit Suisse sold all its shares in the bank
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Harris Associates has sold all of its shares in Credit Suisse, said Financial Times Chief Investment Officer David Herro. According to a top manager, the investment company is tired of a series of scandals around the Swiss bank, as well as the inability of its management to cope with constant losses and the departure of clients.
Harris Associates was once the largest shareholder of Credit Suisse. The Chicago company held a stake in a Swiss bank for two decades. Back in August last year, Harris said it owns a 10% stake in Credit Suisse. However, in January its block of shares was reduced to 5%, and in February the company sold all the shares of the bank remaining in it.
While all of Credit Suisse’s major European rivals posted earnings growth last year, the Swiss bank continued to suffer losses. Moreover, 2022 Credit Suisse completed with a net loss of 7.3 billion francs ($7.9 billion) – several times more than in 2021, and the bank’s worst performance since 2008, when the global financial crisis hit.
“We have many other investment options… Why go to someone who burns capital when the rest of the sector is now generating it?” Herro said.
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