'The investment bank does have a future', said David Herro, chief investment officer of Chicago-based Harris Associates. It should be managed to generate consistently solid returns, not 'recklessly abandoned'.
Bloomberg News reports that Herro, commenting in an e-mail Wednesday on Credit Suisse’s efforts to shrink its securities unit, also predicted that the bank will reach and even exceed its cost-cutting and profit goals. Harris, which participated in a private placement and the ordinary capital increase, owns 'just over' 8.5% of the bank, Herro said.
Thiam, 53, is under pressure from shareholders after a bigger-than-expected fourth-quarter loss. JPMorgan Chase & Co. cut Credit Suisse from overweight to neutral on Tuesday, citing fixed-income risks in the investment bank.
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