The financial times Highlights Amazing Things About The $140 Million Loan From The Top Floor At Credit Suisse To Client Greensill Capital In Fall 2020.
According to the newspaper, the so-called “bridge loan” from the Paradeplatz Bank sometimes had “suspicious bills” as collateral.
The focus is on the Greensill Liberty client owned by Indian Sanjeev Gupta. Her bills formed part of the CS loan to Greensill.
But these accounts may never have existed. They could have been fictionalized by Gupta or Greensill.
This is clear from the Financial Times article. The newspaper was able to see the bills. Then I asked those companies that had to pay the bills.
Four of them – Cargill, Mitsui Busan Metals, Toyota Tsushu Asia Pacific and Itochu Singapore – told the Financial Times they had no record of any transactions with Liberty Commodities.
According to Business, others did not interact or did not want to say anything.
With $140 million in CS, Lex Greensill wanted to take his company Greensill Capital public as quickly as possible or find new investors for it.
The plan fails. On March 1, 2021, after a few months of lending, CS discontinued several Greenill funds immediately after a Japanese insurance company canceled its guarantee to vehicle investors.
CS CEO Thomas Gottstein and his chief risk officer Lara Warner quickly become the focus of the storyline, which subsequently leads to a falling out for the two.
Gotstein personally contacted Grinsel and assured him of his full support, and Warner was responsible for a 140 million loan.
CS told the Financial Times that it had taken back the loan.
“The full recovery of the bridging loan made to Greensill Capital, together with the interest accrued, is further evidence of our absolute intention to seek recourse from this matter wherever we can.”
Greensill provided not only non-existent bills, but also “future” bills as collateral. So these weren’t on the books as a requirement – they were just a possibility.
Powerful steel magnate Gupta and GFG Alliance and Liberty, a subsidiary of GFG, have benefited the most.
The FT GFG coalition quotes: “The Greensill facility expressly permits ‘future receivables.’” It continues:
However, a document sent by Credit Suisse to investors last year stated that Liberty Commodities does not have a ‘future receivable’ facility with Greensill, meaning that financing can only be raised against current bills.
CS Greensill fund buyers demand billions from the bank. Zurich criminal authorities are investigating.
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