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A Credit Suisse Group bank branch in Zurich, Switzerland. Picture: BLOOMBERG/STEFAN WERMUTH
A Credit Suisse Group bank branch in Zurich, Switzerland. Picture: BLOOMBERG/STEFAN WERMUTH

Credit Suisse is delaying the publication of findings from a report into the collapse of a $10bn group of investment funds that it ran together with Greensill Capital.

The bank had initially hoped to present key findings along with its third-quarter results, but will now take longer as executives focus on the implications for their ability to claim back money for fund investors, according to a person familiar with the matter who asked for anonymity. 

The stakes for the bank have been rising after its offices were raided by police over the matter, according to the Financial Times, which reported on the delay earlier Monday. While neither the bank nor current or former employees are people of interest in the investigation, prosecutors could name more people or corporate entities as they progress.

Investors in the supply chain finance funds are still waiting for over $3bn to be repaid, more than half a year after the money pools were frozen. The Swiss lender has shaken up its top management ranks, replaced asset management head Eric Varvel and removed the business from direct oversight of wealth management since it was forced to suspend the funds. Top executives including risk and compliance chief Lara Warner have left, while CEO Thomas Gottstein has held onto his role.

The board of directors recently discussed a draft of the Greensill report that showed many findings were similar to those from a separate report on Credit Suisse’s handling of the Archegos Capital collapse, the person familiar with the matter said.

The supply chain finance funds invested in notes issued by Greensill Capital, a speciality lender that went into administration in March. The bank marketed them as among the safest investments it offered, because the loans they held were backed by invoices usually paid in a matter of weeks. But as the strategy grew, they strayed from that pitch and much of the money was lent through Greensill against expected future invoices, for sales that were merely pitched. 

Credit Suisse is still trying to recover $2.7bn in overdue loan payments. The majority lies with problem borrowers Katerra, Sanjeev Gupta’s GFG Alliance, and Bluestone Resources. All three are undergoing restructuring processes and the bank has said it needs more time to assess how much of investors’ money it will get back. 

Bloomberg News. More stories like this are available on bloomberg.com


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