The boss of the Swiss bank has publicly discussed the emerging scandal over a $ 10.1 billion line of funds that it was operating for the first time with the insolvent specialist British financier.

With the CEO Thomas gottstein Due to confront investors at an annual brokerage conference on Tuesday, Credit Suisse released a trade statement that also addressed the fallout from a line of supply chain funds that the Swiss wealth manager has operated with Greensill Capital.

The bank ended $ 10.1 billion in funds two weeks ago, a move that sparked a series of events, which Greensill filed for insolvency in the UK last week. Credit Suisse has various points of contact with the store as well as with its founder-CEO, Lex Greensill.

On Tuesday, the Swiss bank said in a report it would continue to return the money from the four funds to investors in the coming weeks, having returned $ 3.1 billion last week – this represents the cash portion of the proceeds that Credit Suisse has committed to return promptly .

Partially repaid loan

The Zurich-based bank also loaned Greensill Capital $ 140 million last year, to push the company forward to a now moot public listing. Greensill directors recently repaid $ 50 million, Credit Suisse said, and the outstanding amount on the secured loan is now $ 90 million.

“Although these issues are still at an early stage, we would like to note that it is possible that Credit Suisse will incur costs for these matters,” the bank said.

The fund’s implosion is complicated for the bank from the relationship it had with Lex Greensill himself – the kind of high net worth private client that most Swiss banks seek out. Credit Suisse’s investment bank has also reportedly been lined up for an initial Greensill public offering this year – in addition to links to asset management.

2021 turnover

Gottstein, CEO of Credit Suisse, also said the bank’s strong start in 2021 continued until March. Revenues from his investment banking arm grew by more than half over the year, thanks to issuance, sale and trading in the capital markets, he said.

Its business with high net worth clients, spread over Swiss, international and Asian units, is also doing well. Gottstein highlighted the growth of a global business solutions unit that connects customers to sophisticated products, as well as in Asia Pacific. Credit losses remain “benign,” he noted.

Source link

About The Author

Related Posts

Leave a Reply

Your email address will not be published.