Guardian

Credit Suisse was ‘warned’ about Greensill three years before firm collapsed

<span>Swiss financial regulator Finma found that Credit Suisse "seriously breached its supervisory obligations" and "naively" relied on information from Greensill to defend their partnership, causing "immense reputational damage" to the bank. The regulator determined that inquiries about metals magnate Sanjeev Gupta and Greensill were "sometimes answered incompletely, misleadingly or incorrectly" by Credit Suisse executives.</span

Finews.Com

Swiss financial regulator Finma found that Credit Suisse "seriously breached its supervisory obligations" and "naively" relied on information from Greensill to defend their partnership, causing "immense reputational damage" to the bank. The regulator determined that inquiries about metals magnate Sanjeev Gupta and Greensill were "sometimes answered incompletely, misleadingly or incorrectly" by Credit Suisse executives.

<span>A London High Court trial revealed that Credit Suisse is suing Japanese technology investor SoftBank for $440 million over losses linked to Greensill Capital's collapse, with the case centering on disputed transactions involving Katerra, a SoftBank-backed construction company. Lex Greensill testified that there was a "code of silence" around the contested arrangement and described a "painful" restructuring of the Katerra relationship in 2020.</span

The Times

A London High Court trial revealed that Credit Suisse is suing Japanese technology investor SoftBank for $440 million over losses linked to Greensill Capital's collapse, with the case centering on disputed transactions involving Katerra, a SoftBank-backed construction company. Lex Greensill testified that there was a "code of silence" around the contested arrangement and described a "painful" restructuring of the Katerra relationship in 2020.

<span>The Finma investigation found that Credit Suisse hired private investigations firm Diligence in 2018 to produce a report on Gupta's GFG Alliance due to growing liquidity concerns, which raised red flags including allegations of undisclosed related party transactions and suspected "carousel fraud." Despite Greensill's promises to reduce exposure to Gupta's companies, the Australian financier "put pressure on the portfolio management to buy bonds that actually increased the exposure.".</span

The Finma investigation found that Credit Suisse hired private investigations firm Diligence in 2018 to produce a report on Gupta's GFG Alliance due to growing liquidity concerns, which raised red flags including allegations of undisclosed related party transactions and suspected "carousel fraud." Despite Greensill's promises to reduce exposure to Gupta's companies, the Australian financier "put pressure on the portfolio management to buy bonds that actually increased the exposure.".

<span>Credit Suisse executives struggled to understand Greensill's practice of financing "future receivables" - hypothetical future invoices on trades that had yet to be agreed - with the bank unable to distinguish between future and actual receivables according to Finma's findings. When one employee questioned this practice in April 2020, a senior colleague dismissed concerns by saying the issue had been discussed with Lex Greensill, prompting the response: "I don't know if I find that very reassuring right now.".</span

Credit Suisse executives struggled to understand Greensill's practice of financing "future receivables" - hypothetical future invoices on trades that had yet to be agreed - with the bank unable to distinguish between future and actual receivables according to Finma's findings. When one employee questioned this practice in April 2020, a senior colleague dismissed concerns by saying the issue had been discussed with Lex Greensill, prompting the response: "I don't know if I find that very reassuring right now.".

<span>The collapse of Greensill Capital forced Credit Suisse to close $10 billion worth of Greensill-backed funds, leaving more than 1,000 wealthy clients nursing hundreds of millions in losses and further eroding confidence in the 167-year-old Swiss bank. UBS, which acquired Credit Suisse in an emergency rescue, continues trying to recoup money for former investors while handling the legal legacy of the failed partnership.</span

The collapse of Greensill Capital forced Credit Suisse to close $10 billion worth of Greensill-backed funds, leaving more than 1,000 wealthy clients nursing hundreds of millions in losses and further eroding confidence in the 167-year-old Swiss bank. UBS, which acquired Credit Suisse in an emergency rescue, continues trying to recoup money for former investors while handling the legal legacy of the failed partnership.

Guardian #1

<h2></h2>

Credit Suisse 'warned' about Greensil collapse three years before

Finance

Ethics

Switzerland

United Kingdom

SoftBank's lawsuit defense highlights Credit Suisse's own negligence and risk-taking as the real culprit behind investor losses. The Swiss bank's attempt to blame others for their poor due diligence and oversight failures represents a desperate effort to shift responsibility. Credit Suisse created its own problems through inadequate risk management.

<span>SoftBank's lawsuit defense highlights Credit Suisse's own negligence and risk-taking as the real culprit behind investor losses. The Swiss bank's attempt to blame others for their poor due diligence and oversight failures represents a desperate effort to shift responsibility. Credit Suisse created its own problems through inadequate risk management.</span>

Credit Suisse Ignored Early Warnings About Greensill Partnership

Credit Suisse 'warned'Ignored aboutEarly GreensilWarnings collapseAbout threeGreensill years beforePartnership

The Spin

Articles on this story

Sign Up for Our Free Newsletters
Sign Up for Our Free Newsletters

Credit Suisse Ignored Early Warnings About Greensill Partnership

Credit Suisse 'warned'Ignored aboutEarly GreensilWarnings collapseAbout threeGreensill years beforePartnership

The Spin

Articles on this story

Sign Up for Our Free NewslettersSign Up for Our Free Newsletters

Sign Up for Our Free Newsletters
Sign Up for Our Free Newsletters