Softbank Accuses Credit Suisse in Blame Game

In a high-stakes dispute related to the now-defunct finance firm Greensill, battle lines between Softbank and Credit Suisse are hardening.

Japan's Softbank is accusing Credit Suisse of making it responsible for the bank’s client losses related to the collapse of finance firm Greensill Capital, rather than owning up to its own «poor investment decisions,» it said in internal documents, as «Bloomberg» (behind paywall) reported last week.

The cited documents include an internal Softbank memo and a letter to the Swiss bank’s lawyers.

Credit Suisse is seeking to recover $2.7 billion in overdue loan payments from debtors, including $440 million from Katerra, a now-defunct U.S. construction firm, backed by Softbank.

The Swiss lender argues that Softbank approved emergency financing for Katerra in 2020 from the bank, allowing the investor to pull its own money out. Credit Suisse counters that Softbank knew the already ailing supply chain financier would not be able to repay the $440 million.

Last month, Credit Suisse was given the green light in court to request data from Softbank as part of a lawsuit the bank plans to file in the UK related to the collapse of Greensill Capital.

Softbank’s motion to quash Credit Suisse’s subpoena in a California court is due Feb. 11, Bloomberg reports.