Harris Associates, Credit Suisse's largest shareholder to date, welcomes CEO Ulrich Koerner's restructuring plans for bringing the bank into shape.
If you can't fix the problems, you need other options, said David Herro, chief investment officer of Harris Associates, in an interview with «Bloomberg TV» a few weeks ago. Credit Suisse's investment bank needs to be turned around so that it can deliver earnings over the cycle, he said at the time.
Otherwise, other solutions would have to be found for the division, be it a spin-off, merger, or sale, he said. Harris Associates has been involved with Credit Suisse since the beginning of the century.
The restructuring plans, which the bank presented Thursday, found the support of the major shareholder, as «Reuters» reports.
«We welcome the aggressive approach CS (Credit Suisse) is taking to stabilize and improve the performance of both the investment bank and the group as a whole,» a statement from the Chicago-based investor said.
Radical Restructuring
Under CEO Ulrich Koerner, Credit Suisse is radically restructuring its investment bank. Meanwhile, major investors are pouring capital into the bank, prominent among them Saudi National Bank, which will provide 1.5 billion Swiss francs. That could leave it with an overall stake of up to 9.9 percent of the bank. Significant job cuts were also announced as part of the plan.
With the planned capital increase, Credit Suisse brings Saudi National Bank on board as one of its largest shareholders. To date, the largest holders of the bank's shares are Harris Associates with a 10.1 percent stake, the Qatar Investment Authority with 5.03 percent, and Blackrock, also with around 5 percent.
