Credit Suisse to liquidate parts of 4 funds linked to supply chain finance pionline.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from pionline.com Daily Mail and Mail on Sunday newspapers.
Credit Suisse Freezes More Supply Chain Finance Funds as Greensill Scandal Widens
Credit Suisse Group AG froze four more funds that invested in the bank’s $10 billion supply chain finance strategy, adding to the widening scandal surrounding the bank’s exposure to Lex Greensill’s failed empire.
The additional funds have about $1.2 billion in assets, some of which they had put into the four Greensill-linked funds that Credit Suisse is now liquidating. The bank suspended them effective March 1, the same day it froze the supply chain finance strategy. It posted the decision in an investor update on its website dated March 9.
Credit Suisse has frozen four funds in its asset management unit that had invested in its supply chain finance strategy as it grapples with the fallout from the collapse of $10.1 billion worth of funds linked to British financial services firm Greensill Capital.
(Bloomberg) Credit Suisse Group AG froze four more funds that invested in the bank’s $10 billion supply chain finance strategy, adding to the widening scandal surrounding the bank’s exposure to Lex Greensill’s failed empire. The additional funds have about $1.2 billion in assets, some of which they had put into the four Greensill-linked funds that Credit Suisse is now liquidating. The bank suspended them effective March 1, the same day it froze the supply chain finance strategy. It posted the decision in an investor update on its website dated March 9. The largest of the additional funds are the $701 million Credit Suisse (Lux) Multi Strategy Bond Fund and the $303 million Credit Suisse (Lux) Multi Strategy Alternative Fund. Their suspension compounds a crisis that’s forced Credit Suisse to seek outside help to deal with regulators’ queries and threatens to saddle the bank with losses from a loan that it made months before the collapse of Greensill’s empire. For Chief Exe
Greensill fallout widens over Credit Suisse
Save
Share
London | Financial behemoth Credit Suisse has been drawn further into the meltdown of Australian billionaire Lex Greensill’s supply-chain finance empire, as it revealed it has frozen four more funds and faced accusations of having overruled risk managers to lend the stricken company $US160 million ($207 million).
Credit Suisse told investors this week that it had temporarily closed four Luxembourg-based funds, worth $US1.2 billion. These funds had invested in the Swiss giant’s four Greensill-focused supply-chain finance (SCF) funds, worth $US10 billion, that were liquidated last week.
Credit Suisse has begun paying back money from the supply-chain finance funds to investors. The first payments totalling just over $US3 billion were made to investors earlier this week.