The biggest shareholder in credit Suites For many years Harris Associates has Sold its entire stake in the Swiss bank Harris Associates Deputy chairman David Harrow shared his view with Bloomberg Last year This has been a problem child we've Owned this Bank literally since early 2001. in the first 10 years was a very Good holding I mean it literally went From 20 to 60 or 70. now what we should Have done is just sold it and that's it Heroes investment management firm is Cutting ties with the Swiss bank after Two decades then of ownership as we Heard him describing there let's get Some further details Bloomberg senior Global Equity markets reporter Yan Patrick barnidge joins us good morning Tjp so hero sale ends a long Relationship he was talking about it There going back 20 years or so why is He selling now what can you tell us About this this decision Uh well we don't know too much at this Point but it seems like he has pointed Uh to the issue everybody has an issue With that created suicide now and that Is the outflows at the wealth management Business uh the management of the bank Has always said that's the Core Business This is where credit Swiss will Thrive And will rebuild the relationship with Clients and everything and they are just
Failing in it outflows our continuing Management is not very setting a very Positive message to investors showing Them what they are doing to turn turn The ship around and it looks like that Even like a long-term investor I mean if He calls his investment a problem child That says a lot and right now it seems Like he has lost all faith in the Bank Of of putting out this turnaround at Least in the short term Okay and what's next for the bank then If you know he's talked about this as a Problem child and we know about many of The problems what is next then for the Bank in terms of resetting its business Yeah that's the frustrating part and I've been talking about this for uh ever Since the the problem that happened Right now it's the management really Needs to convince us that they are able To turn the bank around they need to be More forceful in their in their strategy And really like tell us what they are Doing to to rebuild this trust because Right now it just seems like yeah wealth Management is a great business of course But how how how are they going to Rebuild this trust and and that's the Question everybody's wondering about and They're not giving us really an answer And as long as that is uh still like Wobbling around I I really struggle to see like how you
Can be positive for the banker for the Share price Okay okay uh finally what can you tell Us about the the new setup then acrylic Tweets first Boston many people watching That to see how that old name becomes a New name once more Yeah absolutely and that's another Puzzling story everybody was wandering Around about about when Credit Suisse Set up the the latest restructuring well Current Swiss first Boston is doing here Right now makes kind of sense to me Because it's not an easy business going Forward there's lots of risk involved And now you're laying uh setting up a a Top layer for for management to Participate in the success if it happens So that makes kind of sense to um Present some incentives some high Incentive um to keep those talents on Board because it's for for Credit Suisse And for Craigslist first Boston it's not Going to be an easy path down the road So you have to offer your employees Especially your top employees on your Your rainmakers your deal makers uh Something that they stay the stay on Course and steer the ship in this Difficult time
