Credit Suisse has warned it may book a charge following the collapse of Greensill Capital as scrutiny grows over its relationship with the firm.
Earlier this month the Swiss bank closed a $10bn suite of supply-chain finance funds linked to Greensill, and it is also trying to recoup a $140m loan it made to the company last autumn.
In a trading update today, Credit Suisse said $50m of the bridge loan made to Greensill last year had been repaid.
“While these issues are still at an early stage, we would note that it is possible that Credit Suisse will incur a charge in respect of these matters.” It added its main priority remains recovering money that investors had placed into the bank’s supply-chain finance funds.
Greensill specialises in supply-chain finance providing short-term credit to businesses, which it bundled and sold to financial firms.
Last week Greensill Capital filed for insolvency after losing insurance coverage for its debt repackaging business. Court filings showed founder Lex Greensill said he kept senior individuals at the Swiss bank informed about the funds’ insurance coverage in the “weeks” leading up to its insolvency application.
Credit Suisse today said “contrary to certain reports” its chief risk and compliance Lara Warner was not aware until 22 February that the insurance would expire on 1 March.
The future of Greensill remains uncertain after Apollo Global Management ended talks to buy parts of the business.