Biggest Credit Suisse shareholder cuts his stake

Harris Associates, one of Credit Suisse’s (CSGN.S) major shareholders, cut its stake in the bank roughly in half, to about 5%, as the Swiss bank struggled to recover it, according to regulatory documents. confidence of investors.

Harris is one of Credit Suisse’s oldest shareholders and has remained loyal despite a series of scandals in the group. Last August, it announced a nearly 10% stake in the bank.

Late last year, Credit Suisse raised 4 billion Swiss francs ($4.30 billion) from investors, outlining its plans to cut thousands of jobs and focus on investment banking affluent clients.

Those days, Harris had been optimistic, welcoming the bank’s “aggressive” approach to making improvements.

He didn’t respond to a request for comment. The bank declined to comment.

Efforts to turn the bank’s fortunes have followed some rough months, with group shares being targeted by short sellers.

Credit Suisse highlighted the volatility in its shares and social media speculation about its health, saying clients were withdrawing funds at the time at such a rate that the lender violated some regulatory requirements for liquidity.

The bank has the backing of the Saudi National Bank, which is majority-owned by the Saudi Arabian government and will invest as much as 1.5 billion Swiss francs to acquire up to 9.9% stake.

Source of Information : Reuters