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SoftBank-Funded Fintech Upstart Greensill Crashes, Carnage Ensues | naked capitalism Supply chain finance disuptor Greensill is undone by its own financial wizardry, putting at risk thousands of jobs in the UK, Australia and the EU. The timing could not be worse for already buckling supply chains.


Supply chain finance disruptor Greensill is undone by its own financial alchemy, putting at risk thousands of jobs in the UK, Australia and the EU. The timing could not be worse for already buckling supply chains.    
On Monday, the supply chain finance firm Greensill Capital filed for insolvency after defaulting on a $140 million loan it owes to Credit Suisse. Its parent company in Australia had already filed for insolvency there. According to UK court documents, Greensill had “fallen into severe financial distress” and can no longer pay off its debts. Over the past week many of the company’s directors have been frantically jumping ship, including its chairman Maurice Thompson, Australia’s former foreign minister Julie Bishop and former Morgan Stanley executive David Brierwood. ....

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ECB quizzes banks over exposure to Greensill, Gupta


ECB quizzes banks over exposure to Greensill, Gupta
Olaf Storbeck, Martin Arnold, Kaye Wiggins and Stephen Morris
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Europe’s top banking regulator has asked the continent’s lenders for details of their exposure to stricken Greensill Capital and its key client GFG Alliance, as officials try to understand whether the crisis is contained, according to four people familiar with the matter.
Greensill last week was pushed to the brink of insolvency after Credit Suisse abandoned €10 billion ($15.5 billion) of supply chain finance funds linked to the group, and as Germany’s banking watchdog BaFin froze its Bremen-based bank and filed a criminal complaint alleging balance sheet manipulation. ....

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