Credit Suisse took suspicious invoices as backing for £114m Greensill loan
Credit Suisse accepted suspicious invoices from Sanjeev Gupta’s metals empire as collateral for a $140m (£114m) loan to Greensill Capital, just months before it collapsed in October 2020, according to reports.
The Swiss bank accepted invoices, issued by Gupta’s Liberty Commodities and sold to Greensill, as collateral on the loan, even though several of the firms named on the invoices deny having worked with the steel making firm, the Financial Times reported.
Credit Suisse accepted the invoices for nickel sales despite being warned by one of its biggest clients, Swiss commodities trader Trafigura, that Liberty appeared to have raised money from Greensill using suspicious bills.
The bank’s failure to spot the suspicious invoices casts doubts over potential management failures at Credit Suisse, as the Swiss bank seeks to recover the remainder of $10bn it lent to the supply chain financier prior to its 2020 collapse.
Credit Suisse has collected $7.3bn worth of the money it lent to Greensill already, but in July warned clients that collecting a remaining $2bn will cost them $291m.
A spokesperson for Credit Suisse said: “Credit Suisse Asset Management has continued to work tirelessly on the recovery of cash for investors in the supply chain finance funds.”
“The recovery of the bridge loan made to Greensill Capital, in full, plus interest owed, is further evidence of our absolute determination to seek recourse from this matter wherever we can.”