German regulator ‘files criminal complaint’ over manipulation at Greensill Bank
The German financial regulator has reportedly filed a criminal complaint against Greensill Bank for suspected balance sheet manipulation.
Bafin filed the complaint earlier today with prosecutors in Bremen where the bank’s headquarters are based, according to the Financial Times.
It comes as part of an investigation into the firm’s balance sheet by KPMG which started last year.
It comes amid a difficult week for the bank’s parent company Greensill.
The beleaguered finance firm advised by former PM David Cameron is in talks to sell parts of its business as reports suggest it is filing for insolvency.
In a statement supply chain finance firm Greensill said it had entered into a “period of exclusivity with a leading global financial institution” with plans to conclude a transaction this week.
Reports suggest Greensill is in talks with private equity giant Apollo but the firm declined to comment.
The firm specialises in supply-chain finance where businesses borrow money to pay bills. The sector has come under heightened scrutiny with some suggesting the loans can be used to disguise heaps of borrowing.
It comes after a tumultuous week for the Softbank-backed firm which saw Credit Suisse halt $10bn worth of redemptions in funds investing in its products.
On Tuesday GAM Investments followed suit announcing it had closed its GAM Greensill supply chain finance fund “as a result of recent market developments”. Chief executive Peter Sanderson said the decision was in the “best interests of all clients in the fund”.
It also emerged Greensill is seeking insolvency protection in Australia which would protect directors from personal liability for a company trading while insolvent.
Although the company is largely based in London it is registered in the Australian city of Bundaberg, the hometown of founder Lex Greensill.
Greensill was approached for comment.