Being taken over by UBS didn't mean the gears in Credit Suisse's legal department stopped turning. The Greensill case still needs to be resolved, and now a lawsuit has been filed in a London court.
Credit Suisse filed a $440 million lawsuit in a London court against Japan's Softbank Group related to the implosion of Greensill Capital, according to reporting by «Reuters»
Credit Suisse seeks to recover client funds that Greensill had lent to Katerra, a US construction company backed by Softbank that filed for bankruptcy in 2021. Softbank has already announced its intention to vigorously defend itself against the claim.
Inaccessible Funds
Credit Suisse accuses Softbank of knowing about Katerra's restructuring in 2020 which, according to documents filed in the US in 2021, made the funds inaccessible to Credit Suisse investors.
For its part, SoftBank says Credit Suisse is trying to shift blame for its own poor investment decisions and said the case is completely without merit.
The Swiss bank countered, saying through a spokesperson that it «continues to prioritize maximizing profits for investors in its supply chain finance funds».
Triggering a Crisis
The Greensill collapse was one of the triggers for the crisis of confidence at Credit Suisse which had a total of $10 billion of client money in its supply chain funds, which were closed when financier Lex Greensill's supply chain finance firm collapsed two years ago.
Meanwhile, Credit Suisse's liquidation of the Greensill funds continues and at last count, had recovered about 7.4 billion of the funds' original assets. Two of the four funds have been liquidated.
After its enforcement proceedings in the Greensill case at the end of February, Finma certified that Credit Suisse had seriously breached its regulatory obligations.
