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

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.

Hit the link below to access the complete Bloomberg News article:

Credit Suisse Investor Herro Backs Thiam on Overhaul Plans

Hedge Fund Manager Puts Profile on Social Media, Lures $20 Million

JefferiesAnd the Best Place to Work in the global financial markets 2017 is...

Register for Financial Markets News Alerts