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Credit Suisse Cuts Ties With SoftBank After Greensill Crisis

(Bloomberg) Credit Suisse Group AG is cutting ties with SoftBank Group Corp., distancing itself from a key backer to Lex Greensill’s collapsed supply-chain finance empire after conflict-of-interest allegations. The Swiss lender will no longer do any new business with the Japanese firm, people with knowledge of situation said, asking not to be identified because the matter is private. The decision may ripple across Credit Suisse’s investment bank: SoftBank has been a prolific dealmaker and last year Credit Suisse and other banks held about $8 billion of SoftBank shares in collateral, pledged by founder Masayoshi Son. It is unclear how long the ban lasts for, or whether it impacts any ongoing deals. Credit Suisse is reviewing its risk and client relationships after being hit by the twin collapses of Greensill and Archegos Capital Management. New Chairman Antonio Horta-Osorio has pledged a wide-ranging review after the bank was forced to suspend billions of dollars of funds it manag ....

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UPDATE 1-Investors file class action against Credit Suisse over Archegos, Greensill dealings


UPDATE 2-Law firm joins class action against Credit Suisse over Archegos, Greensill dealings
Reuters
9 hrs ago
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By Brenna Hughes Neghaiwi
ZURICH, May 21 (Reuters) - Law firm Frank R. Cruz said on Friday it was participating in a lawsuit against Credit Suisse over the Swiss bank s dealings with Archegos and Greensill.
The City of St. Clair Shores Police & Fire Retirement System, based in St. Clair Shores, Michigan, in April filed a class action lawsuit against the bank in federal court in Manhattan, accusing the Swiss bank of misleading investors and mismanaging risk exposure to high-risk clients, alleging violations of federal securities laws. ....

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