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“We are currently focused on getting our investors back,” said bank spokesman Will Bowen, adding that the bank’s internal investigation will address any issues related to the funds. “We are determined to learn our lesson.”
Andrew Mitchell, a spokesman for the Gupta Family Group Alliance, a Gupta affiliate that includes Liberty Commodities, denied any wrongdoing. The Greensill saga is just one of the two catastrophes Credit Suisse has already had to endure this year – the collapse of Archegos Capital brought another $ 5.5 billion in losses.
The work of Gupta is controversial
Gupta was targeted by bankers in 2016 because they became increasingly skeptical about Liberty documents and, as a result, their transactions. Bloomberg and the Wall Street Journal had already reported such cases.
Today’s Credit Suisse Managing Director Thomas Gottstein, who was head of the trade finance department at the time, was unaware of the internal reservations about Gupta, according to a person familiar with the matter.
Other banks like Macquarie and Sberbank PJSC closed some of their Liberty Commodities deals around the same time as Credit Suisse because of similar concerns. Also Goldman Sachs ceased trading, Bloomberg reported.
Nonetheless, in 2017 Credit Suisse Asset Management began launching a number of funds specializing in supply chain finance. The funds bought securitized loans that were packaged by Greensill, much of which was related to Gupta’s company.
More: New Credit Suisse President takes a close look at strategy – risk manager withdraws