Swiss watchdog requested Credit score Suisse on Greensill dangers

© Reuters. FILE PHOTO: Emblem of Swiss financial institution Credit score Suisse is seen in Zurich ZURICH (Reuters) – The top of Switzerland’s monetary regulator FINMA questioned Credit score Suisse (SIX:) Group AG over dangers in its dealings with now-insolvent finance agency Greensill Capital “months” earlier than the financial institution was pressured to shut $10



© Reuters. FILE PHOTO: Emblem of Swiss financial institution Credit score Suisse is seen in Zurich

ZURICH (Reuters) – The top of Switzerland’s monetary regulator FINMA questioned Credit score Suisse (SIX:) Group AG over dangers in its dealings with now-insolvent finance agency Greensill Capital “months” earlier than the financial institution was pressured to shut $10 billion of funds linked to Greensill, Swiss newspaper SonntagsZeitung reported on Sunday.

Alongside formal discussions on a technical stage between the financial institution and FINMA, the watchdog’s head Mark Branson personally mentioned the dangers with outgoing Credit score Suisse Chairman Urs Rohner and Chief Govt Thomas Gottstein throughout a gathering on an unspecified date, the newspaper reported, citing data it had obtained.

FINMA and Credit score Suisse declined to remark to Reuters.

Switzerland’s second-biggest financial institution has been reeling from its publicity to the collapse first of Greensill Capital after which Archegos Capital Administration inside the course of 1 month.

Credit score Suisse’s asset administration unit was final month pressured to close $10 billion of provide chain finance funds that invested in bonds issued by Greensill after the British agency misplaced credit score insurance coverage protection shortly earlier than submitting for insolvency. The financial institution has since suspended the funds’ managers and altered the pinnacle of its asset administration unit.

Large losses at U.S. funding fund Archegos this month additionally prompted Credit score Suisse to switch its heads of funding banking and of compliance and danger after it stated it might e-book a $4.7 billion first-quarter cost from its publicity to the stricken agency.

SonntagsZeitung on Sunday reported that Archegos founder Invoice Hwang might have drawn as much as $10 billion value of credit score from Credit score Suisse, citing data from an inside supply that the financial institution had assumed nine-fold leverage on the publicity.

Credit score Suisse and Archegos declined to remark to Reuters on the matter.

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