Harris Associates chief investment officer David Herro called Credit Suisse’s investment banking division a «problem child» that needs to be fixed within the next two years.
Top Credit Suisse shareholder Harris Associates continues to be publicly vocal about troubles at the Swiss lender, calling on the investment bank to resolve its issues and prevent further losses or seek other options. According to Harris Associates CIO David Herro, this includes the possibility of a sale, spinoff or merger.
«This has been a problem child,» said Herro in a recent interview with «Bloomberg», stressing that alternative options must be explored if the investment bank can’t be fixed within the next year or two. «It sounds simple, but all they have to do is prevent the investment bank from losing money.»
Should Have Sold Earlier
According to Herro, Harris Associates has been been a shareholder of Credit Suisse since 2001 and the share price in the early years performed strongly, noting that the bank also outdid rivals during the 2008 financial crisis which led to more stocks being bought.
«What we should have done then was sold it,» Herro said. «You can’t keep doing the same thing they have been doing over the last decade and get zero results. They have to put an end to it.»
Earlier this month, it was disclosed that Harris Associates was Credit Suisse’s largest shareholder with a stake of around 10.1 percent.
