Credit Suisse top shareholder asks for investment bank overhaul, Bloomberg reports

Logo of Credit Suisse is seen in Zurich

Aug 19 (Reuters) – Credit Suisse Group AG's (CSGN.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%. read more

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. read more

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)


Related posts

American Airlines pilots ‘near’ reaching agreement on new contract – union memo

Cynthia Danforth

Oil steady as U.S. output ramps up after freeze, China eases COVID curbs

Cynthia Danforth

UN experts at COP27: Corporate climate pledges rife with greenwashing

Cynthia Danforth

Leave a Comment