Investors are eagerly awaiting the final report on the investigations.
(Photo: Bloomberg)
Zurich, Frankfurt Credit Suisse’s internal processing of the billions in losses with the Greensill funds is apparently stalling. In financial circles it was expected that the major Swiss bank would also present excerpts from the internal investigations into the Greensill scandal at the beginning of November when the quarterly figures were presented.
But according to a report in the Financial Times, the final report on the investigation will not be ready in time. Credit Suisse declined to comment.
This could have consequences for the timetable for the strategic realignment. In banking circles it was previously assumed that the Chairman of the Board of Directors Antonio Horta-Osorio would present his new strategy in November. Credit Suisse officially aims to develop a new strategy by the end of the year. However, it is questionable whether Horta-Osorio will comment on future issues before tackling the contaminated sites.
The bank operated four funds with a total of $ 10 billion in assets under management with the bankrupt fintech Greensill. Before the collapse in spring 2021, it was active in the area of supply chain financing.
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The company bought supplier accounts receivable from industrial companies and wrapped them in fixed-income securities. Credit Suisse raised money from professional investors and launched funds with the Greensill papers.
Swiss authorities are taking action
At the beginning of March, the bank had to liquidate the funds. She recently warned investors that a good $ 2.3 billion in investor money would be difficult to get back. Around seven billion have already been secured or flowed back to investors.
Credit Suisse hired the auditors from Deloitte and the law firm Walder Wyss to conduct an internal investigation into how the billions were lost. However, the bank never announced an official date when the report should be available.
Credit Suisse hit the headlines again in the Greensill affair after the Zurich public prosecutor’s office searched the bank’s premises two weeks ago and confiscated documents. The Swiss State Secretariat for Economic Affairs (Seco) had previously filed a criminal complaint against an employee of Greensill and against unknown persons on suspicion of unfair competition. On request, the authority did not want to comment on the specific allegations.
It is a rare occurrence for a federal agency to file a criminal complaint that is not directly involved in the Greensill case. The law provides that the federal government can take legal action, for example if Switzerland’s reputation abroad is threatened or injured. The step taken by Seco is seen by the Zurich financial center as an indication that the Swiss authorities are now also increasing their pressure to clarify the Greensill case.
More: Credit Suisse is distributing another cash tranche from Greensill funds.