Those who had hoped the bank would put their own report on Greensill supply chain funds and in-house responsibilities on the table with third-quarter numbers in early November will now be disappointed.

At Credit Suisse (CS) it will probably take longer than planned for the Greensill report to be published. Apparently, the regulatory investigations and ongoing investigations that led to a raid on the headquarters in Zurich last week are causing delays.

This is reported by the “Financial Times” (Item subject to payment) on Monday, citing circles. The report was postponed as the bank was preparing for a series of legal disputes.

Not finished yet

The CS had hoped to publish the results of the investigation it commissioned, which was carried out by Deloitte and the Swiss law firm Walder Wyss, as part of the results for the third quarter in the coming month, according to people familiar with the plans.

However, it will not be possible to meet this deadline. The report was not yet completed after the CS was in distress due to a raid on the headquarters in Zurich.

Two weeks ago, documents related to the Zurich prosecutor’s criminal investigation into Greensill’s activities were seized. It appears to be about the way CS’s funds, which financed the British company’s controversial loan programs, were managed and marketed.

Regulatory investigations

CS suspended a series of supply chain funds worth $ 10 billion in March. Regulatory investigations into the Greensill case are ongoing in Switzerland, the UK and the US.

Although the criminal investigation in Switzerland is not currently directed against CS, some executives at the bank fear that the investigation could be broadened, the sources report.

Lots of disgruntled investors

A draft of the Greensill report was discussed last weekend at a board meeting of the CS. It was also about the question of how the Greensill report will affect the efforts to recover the Greensill loans, insurance claims and lawsuits from fund customers.

“Many disgruntled investors are of the opinion that the CS has sold them the funds wrong,” said a person involved in the planning of the bank. “The legal issues will be more of a civil law than a criminal one.”

70 percent collected again

Of the $ 10 billion suspended in the Greensill Fund, $ 7 billion has been withdrawn so far. According to CS, $ 2.3 billion will be difficult to get back.

Last week, the bank said it was not confident that it would get back in full the money lent to a number of small businesses if it came to another $ 400 million.

Will Credit Suisse (CS) present a convincing reorganization at the beginning of November 2021?

  • Yes, in any case, CS President António Horta-Osório will save CS.

  • Yes, because you can’t go wrong at CS.

  • It depends on the status given to CS in Switzerland.

  • No, if Thomas Gottstein remains CEO, nothing will change.

  • No, António Horta-Osório simply has too little idea about CS.


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