Credit Suisse is trying to free up blocked monies tied up the Greensill fund via insurance claims. A breakthrough, however, remains elusive.
Recently, Credit Suisse decided to keep the internal report on the debacle surrounding the closed Greensill funds under wraps. While the bank continues to inform fund investors about the repayment of the assets, blocked since March 2021, Monday's «update» turned out to be rather narrow.
As of the end of January, no additional funds were transferred, and of the $10 billion in assets, Credit Suisse has so far paid back $6.7 billion to clients since the fund’s closure.
Instead, Credit Suisse is now however forcing claims against insurance companies because certain fund units were covered by policies. As of January 31, seven claims, asserting $1.2 billion, have been filed, but news from insurers on granting or denying them is pending.
Some of the policies were not renewed at the end of 2020, throwing that process into limbo.
Was fraud involved?
It remains unclear whether fraud occurred in the context of the fund investments, and whether the insurance companies would withdraw from their obligations as a result.
Credit Suisse has already taken legal action against its former client Softbank, with the bank accusing the Japanese technology group of double-dealing at the expense of the funds.
