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Credit Suisse freezes US$1bil of funds as scandal widens
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Credit Suisse freezes another $US1 2b of funds as Greensill fallout widens
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ZURICH (Reuters) - Credit Suisse grappled with the fall-out of Greensill Capital’s insolvency on Wednesday, as the head of its European asset management division temporarily stepped aside and it appointed receivers to recover a $140 million loan in Australia.
FILE PHOTO: The logo of Swiss bank Credit Suisse is seen at a branch office in Bern, Switzerland, Oct. 28, 2020. REUTERS/Arnd Wiegmann
The Swiss bank was a key source of funding for the speciality finance firm, selling $10 billion worth of securities created by Greensill to investors via its asset management arm.
Greensill began to unravel last week after losing insurance coverage for its debt repackaging business, prompting Credit Suisse to freeze its Greensill-linked funds.
(Bloomberg) Credit Suisse Group AG temporarily replaced three employees in its assets management unit after the bank was forced to freeze a $10 billion group of supply-chain finance funds it had run with financier Lex Greensill.Michel Degen, head of asset management in Switzerland and EMEA, is being replaced in the interim by Filippo Rima, according to a person familiar with the matter. Luc Mathys, head of fixed income in the unit, and the manager of the funds were also suspended from those roles, the person said, asking not to be identified discussing internal information.A spokesperson for Credit Suisse declined to comment on the changes, which were reported earlier by Finews.com.Credit Suisse froze redemptions last week and said it would liquidate the strategy, a group of short-term debt funds for which Greensill had provided the assets and which had been held up as a success story. The bank took the decision after doubts emerged about the valuations of some of the assets, kicking
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