Greensill insurance mystery turns up the heat on Credit Suisse
By Tom Bergin
Reuters
LONDON (Reuters) - Credit Suisse told investors the debt in its $7.3 billion finance fund was low risk because it was insured but the bank failed to ensure the policies would pay out, two sources told Reuters.
When Japan's Tokio Marine, the company insuring the debt, declined to renew its coverage with Greensill Capital last month, Credit Suisse was forced to liquidate the fund and said this may have a material impact on its results and reputation.
The bank's shares have fallen by almost a quarter in the past month as it deals with the fallout from Greensill and the impact of losses at its prime brokerage division caused by the stricken U.S. fund Archegos.