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Big Credit Suisse investor Harris "hopeful" for bank's turnaround

Big Credit Suisse investor Harris backs new chairman - paper
Big Credit Suisse investor Harris backs new chairman - paper   -   Copyright  Thomson Reuters 2022
By Reuters

ZURICH -One of the largest shareholders of Credit Suisse hopes the bank’s new chairman, Axel Lehmann, can steer the embattled lender through a turnaround, David Herro of Harris Associates said on the investor’s website.

Harris Associates, the bank’s third-biggest investor with a stake of 5%, according to Refinitiv data, remained hopeful for the bank and its strategic plan, Deputy Chairman David Herro said in a statement.

The U.S. fund manager had previously supported Lehmann’s predecessor, who resigned after flouting COVID-19 quarantine rules.

“Although we are disappointed to see the departure of Antonio Horta-Osorio from Credit Suisse given his talents and the restructuring plan he initiated there,” Herro said in a statement, “we remain hopeful that with the various management enhancements, including the appointment of Axel Lehmann and the numerous appointments that have been made in the last eight months to the executive board, along with a timely execution of this new strategic plan, that Credit Suisse will not only be strengthened but revitalized.”

In December, Harris said it was “100% supportive” of Horta-Osorio after an internal investigation by the bank found he had breached COVID-19 rules a second time.

At the time, Herro described the infractions as minor, calling them distractions from the turnaround at the bank, which has been hit by a string of scandals and losses.