Credit Suisse has put a figure on the cost of recovering money from the collapsed Greensill funds as it announces the retrieval of more money.
Credit Suisse Asset Management Tuesday said it estimated that around $145 million of recovery costs will be accrued by its collapsed Greensill supply chain funds in 2021.
At the same time it announced the total recovered was now $7.0 billion of the around $10.1 billion invested in the funds when they closed in March. In its previous statement at the end of July CSAM said it had recovered $6.6 billion.
In early August the bank paid $400 million to investors, bringing the total paid out to $5.9 billion.
CEO Thomas Gottstein has said his top priority is to claw back investors' money.
Insurance Claim
On Tuesday CSAM said a first insurance claim has been filed and that it was preparing to file additional claims through Greensill Bank with the assistance of Greensill Capital UK.
The problem for Credit Suisse is that it has few rights because it isn’t the policyholder, simply the so-called «loss payee». Greensill was the policyholder.
Tokio Marine, a Japanese insurer came to own the policies through its acquisition of Bond & Credit Company in 2019.
«We continue to assess the validity of cover extended to Greensill,» a spokesman for Tokio Marine said in June.
The funds were sold to investors as being underwritten by insurance. Credit Suisse closed the funds when Tokio Marine withdrew its cover.
