Salem Radio Network News Saturday, October 1, 2022

Business

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

(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)

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