Swiss watchdog asked Credit Suisse on Greensill risks
ZURICH - The head of Switzerland’s financial regulator FINMA questioned Credit Suisse over risks in its dealings with now-insolvent finance firm Greensill Capital “months” before the bank was forced to close $10 billion of funds liked to Greensill, Swiss newspaper SonntagsZeitung reported Sunday.
Alongside formal discussions on a technical level between
the bank and FINMA, the watchdog’s head Mark Branson personally discussed the
risks with outgoing Credit Suisse Chairman Urs Rohner and Chief Executive
Thomas Gottstein during a meeting on an unspecified date, the paper reported,
citing information it had obtained.
FINMA declined to comment. Credit Suisse also declined to
comment.
Switzerland’s second biggest bank has been reeling from its
exposure to the collapse first of Greensill Capital and then Archegos Capital
Management within the course of one month.
Credit Suisse’s asset management unit was last month forced
to shut $10 billion of supply chain finance funds that invested in bonds issued
by Greensill after the UK firm lost credit insurance coverage shortly before
filing for insolvency. The bank has since suspended the funds’ managers and changed
the head of its asset management unit.
Huge losses at U.S. investment fund Archegos this month also
prompted Credit Suisse to replace its head of investment banking and of
compliance and risk after it said it would book a $4.7 billion first-quarter
charge from its exposure to the stricken firm.
Comments
Post a Comment