Guardian

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

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Credit Suisse executives received anonymous warnings as early as 2018 questioning their partnership with Greensill Capital, three years before the 2021 collapse that contributed to the Swiss bank's demise in March 2023. The warnings raised concerns about the bank's strategy of packaging Greensill's loans into $10 billion worth of investable funds for wealthy clients.

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Credit Suisse executives received anonymous warnings as early as 2018 questioning their partnership with Greensill Capital, three years before the 2021 collapse that contributed to the Swiss bank's demise in March 2023. The warnings raised concerns about the bank's strategy of packaging Greensill's loans into $10 billion worth of investable funds for wealthy clients.

Swiss regulator Finma found that Credit Suisse "breached its supervisory obligations" and "naively" relied on Greensill to defend their partnership, causing "immense reputational damage" to the bank. It determined that inquiries about metals magnate Sanjeev Gupta and Greensill were "sometimes" wrongly answered by Credit Suisse executives.

Swiss regulator Finma found that Credit Suisse "breached its supervisory obligations" and "naively" relied on Greensill to defend their partnership, causing "immense reputational damage" to the bank. It determined that inquiries about metals magnate Sanjeev Gupta and Greensill were "sometimes" wrongly answered by Credit Suisse executives.

Finma 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."

Finma 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."

Credit Suisse executives also failed to grasp Greensill’s financing of "future receivables" — invoices for hypothetical deals. When flagged by an employee in April 2020, a senior employee dismissed concerns, citing a chat with Lex Greensill, to which the subordinate questioned the matter.

Credit Suisse executives also failed to grasp Greensill’s financing of "future receivables" — invoices for hypothetical deals. When flagged by an employee in April 2020, a senior employee dismissed concerns, citing a chat with Lex Greensill, to which the subordinate questioned the matter.

This comes amid a London High Court case where Credit Suisse is suing SoftBank for $440 million over losses tied to Greensill Capital's collapse, focusing on transactions with SoftBank-backed Katerra. Lex Greensill testified about a "code of silence" surrounding the disputed arrangement and described Katerra's 2020 restructuring as "painful."

The Times

This comes amid a London High Court case where Credit Suisse is suing SoftBank for $440 million over losses tied to Greensill Capital's collapse, focusing on transactions with SoftBank-backed Katerra. Lex Greensill testified about a "code of silence" surrounding the disputed arrangement and described Katerra's 2020 restructuring as "painful."

Greensill's collapse led Credit Suisse to shutter $10B in funds, leaving 1,000+ wealthy clients with massive losses and damaging the bank’s reputation. UBS, now the owner of Credit Suisse, is still chasing repayments and managing the legal fallout.

Greensill's collapse led Credit Suisse to shutter $10B in funds, leaving 1,000+ wealthy clients with massive losses and damaging the bank’s reputation. UBS, now the owner of Credit Suisse, is still chasing repayments and managing the legal fallout.

Guardian #1

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

FT #

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.

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.

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.".

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.".

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

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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.

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.

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.

Spies, lies and anonymous tips: the secret Credit Suisse files on Greensill Capital

Lex Greensill tells court of code of silence on Softbank deal

Credit Suisse Ignored Early Warnings About Greensill Partnership

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Ethics

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United Kingdom

Credit Suisse's $440M lawsuit against SoftBank exposes Greensill's corrupt, opaque loan schemes, hiding risky claims. That said, Credit Suisse is also at fault, as Finma found it clearly breached risk oversight and ignored years of warnings. The senior manager involved should have nipped this in the bud before it turned into a $10 billion fund collapse.

Credit Suisse's $440M lawsuit against SoftBank exposes Greensill's corrupt, opaque loan schemes, hiding risky claims. That said, Credit Suisse is also at fault, as Finma found it clearly breached risk oversight and ignored years of warnings. The senior manager involved should have nipped this in the bud before it turned into a $10 billion fund collapse.

Barrons

Credit Suisse 'Seriously Breached' Duty In Greensill Affair: Watchdog

Credit Suisse's $440M lawsuit against SoftBank and Greensill's collapse reveal not just their own corruption, but the rotten banking system as a whole. While Finma exposed Credit Suisse's failure to protect people's money, it also proves, as shown by the bank's $510M fine for hiding $4B offshore, complete systemic rot. SEC waivers for UBS prove big banks escape justice, protected by their size and influence.

Credit Suisse's $440M lawsuit against SoftBank and Greensill's collapse reveal not just their own corruption, but the rotten banking system as a whole. While Finma exposed Credit Suisse's failure to protect people's money, it also proves, as shown by the bank's $510M fine for hiding $4B offshore, complete systemic rot. SEC waivers for UBS prove big banks escape justice, protected by their size and influence.

Credit Suisse Ignored Early Warnings About Greensill Partnership

Credit Suisse Ignored Early Warnings About Greensill Partnership

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Credit Suisse Ignored Early Warnings About Greensill Partnership

Credit Suisse Ignored Early Warnings About Greensill Partnership

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