Harris Associates sold its entire stake in Credit Suisse Group AG, according to the Financial Times, ending ties with the firm after about two decades of ownership and piling further pressure on the Swiss bank’s leadership.
(Bloomberg) — Harris Associates sold its entire stake in Credit Suisse Group AG, according to the Financial Times, ending ties with the firm after about two decades of ownership and piling further pressure on the Swiss bank’s leadership.
“Rising interest rates mean lots of European financials are headed in the other direction,” the FT cited David Herro, chief investment officer for international equities at Harris, as saying. “Why go for something that is burning capital when the rest of the sector is now generating it?”
Harris was the biggest shareholder in Credit Suisse for many years, and halved its 10% holding toward the end of 2022 to 5%. The stock sank to a record low last week, sliding in the wake of last month’s financial results that showed a larger-than-expected loss following record outflows. The shares have erased about 95% of their value since the summer of 2007.
Herro also criticized Credit Suisse’s plan to spin out its investment bank under the leadership of Michael Klein, saying the proposal was “cumbersome” and would burn through more cash than Herro expected, the FT reported.
The Saudi National Bank is now the largest holder, according to Credit Suisse’s website and data compiled by Bloomberg.
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