C Suisse CEO 'capable', investment bank does have a future

Tidjane Thiam

CEO Tidjane Thiam is 'very capable' of making the right decisions on which parts of Credit Suisse’s investment bank to keep and which to relinquish, one of the company’s biggest shareholders said.

'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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