Financial News: Credit Suisse delays report into Greensill following police raid
Credit Suisse has delayed the release of findings from a report into the collapse of $10 billion in investment funds it ran with Greensill Capital.
Findings from the report were set to be released alongside its third-quarter results next month.
However, release of the findings will now be delayed following a raid on Credit Suisse’s
headquarters by the police and concerns its release could hamper the ability of the bank to collect investor money it is owed following the collapse, according to a person familiar with the matter.
Credit Suisse’s headquarters were raided by Swiss Police last month as part of the investigation by Zurich’s public prosecutor into Greensill.
The investigation is not targeted at Credit Suisse, but insiders fear its ambit could be expanded, according to the Financial Times which first reported the delay of the report’s publication.
There are also concerns that the release of the findings could reduce Credit Suisse’s ability to collect $2.7 billion that it has not yet recovered following the collapse of $10bn in funds linked to Greensill, the person familiar with the matter said.
The bank also faces the prospect of lawsuits from investors whose money was tied up in the collapsed funds, the FT said,
The Greensill report was carried out by accountancy firm Deloitte and Swiss law firm Walder Wyss. An earlier report by law firm Paul Weiss into Credit Suisse’s $5.5bn loss from the collapse of hedge fund Archegos Capital was released in full. However, only a selection of this report is likely to be released, and it is unclear when that will be.
“The business was focused on maximising short-term profits and failed to rein in and, indeed, enabled Archegos’s voracious risk-taking,” the Paul Weiss report said. There were numerous warning signals that Archegos’s positions “posed potentially catastrophic risk” to Credit Suisse.