Credit Suisse pays out another $1.7bn of fund assets linked to Greensill
Credit Suisse is set to pay out another $1.7bn of funds linked to the now collapsed Greensill Capital.
It takes the total distribution to $4.8bn so far, the bank said, following an earlier payout of $3.1bn.
The Swiss bank has been mired in controversy in recent weeks due to its exposure to the collapse of Greensill and then Archegos Capital Management. Last month Credit Suisse suspended a $10bn suite of Greensill-backed funds before the firm filed for insolvency.
Today the bank said it had collected $2bn from receivables redeemable since the suspension on 1 March. This, along with the cash position in the supply chain finance funds and the earlier payout comes to $5.4bn. This is equivalent to more than half of the total assets under management when the funds were suspended.
“We remain acutely aware of the uncertainty that the wind-down process creates for those of our clients who are invested in the funds,” Credit Suisse said. “We are doing everything that we can to provide them with clarity, to work through issues as they arise and, ultimately, to return cash to them.”
The bank said it was in “active dialogue” with Greensill’s administrators and intends to provide a further update at the end of the month.
The collapse of Greensill Capital has now become a headache for former PM David Cameron. Boris Johnson yesterday announced an independent review into the way Cameron lobbied health secretary Matt Hancock and chancellor Rishi Sunak on behalf of Greensill.