Swiss police attack Credit Suisse as part of Green Sill investigation

Texas News Today

The bank said last week it opened a Group AG office as part of an investigation into collapsed financial firm Greensil Capital.

The failure of Greensil in March affected Swiss banks. Credit Suisse operated a $10 billion investment fund to fund Greensil’s supply chain finance loan program. Credit Suisse has recovered about $7 billion of the $10 billion it invested in the Credit Suisse-Greensill fund.

“The data was collected during the official process of not targeting Credit Suisse,” a bank spokesperson said in an email. He said that the bank is cooperating fully with the authorities.

Swiss newspaper NZZam Sonntag previously reported that the attack on Credit Suisse’s office was part of a Zurich prosecutor’s investigation in Greensil. According to the newspaper, the Swiss Bureau of Economic Affairs has filed criminal charges alleging unfair competition violations related to Greensil.

Zurich’s prosecutor and economic affairs ministry did not immediately respond to a request for comment.

A spokesperson for Green Sill, under the control of the UK Bankruptcy Manager, did not immediately respond to a request for comment.

Switzerland’s leading financial regulator FINMA is continuing civil enforcement proceedings against Credit Suisse in relation to Greensil’s treatment. The bank’s asset management arm acquired Greensil’s supply chain finance loans for several years and invested in an investment fund that was sold to investors as a relatively safe investment.

In fact, many of Greensil’s loans were for high-risk borrowers and were not part of traditional supply chain finance, a type of short-term encashment for businesses.

A few weeks after Greensil’s unveiling, another client, Archegos Capital Management, a family office, went bankrupt and Credit Suisse knocked the bank down a further $5.5 billion to close its stake. He was done.

Credit Suisse President Antonio Horta Osorio said at a shareholders meeting to vote for two new directors on Friday, saying banks have made great progress since they began improving risk management in April. Rice field.

To avoid further explosions, we have added new roles and redesigned risk management methods. Board members Axel Lehmann and Juan Columbus, who joined on Friday, both had previously had some of the riskiest jobs at financial institutions.

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