For Thomas Gottstein, Lex Greensill becomes a personal risk. The CEO of Credit Suisse had to do with the financial prodigy from Australia facing the crash.
Gottstein called Greensill personally on the Zoom video service last spring, whose London empire is on the brink of collapse.
According to a spokeswoman this morning, Gottstein spoke to all important customers after his freestyle to CEO of CS.
When CS Greensill granted a loan of 160 million dollars in the fall with the aim of listing the company on the stock exchange, Gottstein did not agree with Greensill, according to the CS woman.
The fact that CS was preparing the IPO for the finance company makes people sit up and take notice. It did so after a comprehensive examination which had taken place last early summer under Gottstein’s command.
In December, CS then propagated the so-called supply chain funds from Greensill on its investor day. One wants to push this further.
The timing was explosive. On September 1, 2020, the fund’s insurers declared that they would no longer “automatically” renew their protection at the beginning of March 2021, as reported by Bloomberg.
According to Bloomberg, according to a judge, it is questionable why Greensill took care of the problem with the insurers until late, “despite the fact that the underwriters’ position was made clear eight months ago”.
The protection was necessary so that CS could recommend the Greensill funds to professional investors, including many Swiss pension funds, for purchase.
The possible njet of the insurers was therefore on the table at the beginning of September last year at the latest.
Previously, under the leadership of its top boss, CS had put the Greensill funds through their paces, as well as the entire asset management where the funds were located.
Despite all these analyzes and risk reviews by the highest committees and specialists, Gottstein and his CS gave Lex Greensill and his company a huge loan.
And despite the warning signals from insurers, which were well known at the time, they warmly recommended the Greensill funds to investors in December.
The profits with customer Greensill seemed too tempting.
An IPO of his company promised a million-dollar rain for the CS investment bank, and Greensill was also a top customer in private banking, as the Financial Times (FT) announced this week.
CS launched the Greensill Fund in 2017.
At that time, Iqbal Khan was in charge of International Wealth Management, under him Eric Varvel and Michel Degen were in charge of asset management.
In other words, the area that offered the funds for sale with the help of Greensill and which then ended up in the custody accounts of the customers, mainly Swiss pension funds.
After a slow start, the supply chain papers went away like Weggli in 2019. At the end of 2019, the CS showed almost 8 billion dollars for them.
Even then they gave a lot of talk.
GAM, an asset manager from Zurich, got into an existential crisis in 2018 because of the manager responsible for the Greensill funds.
GAM has not recovered from the setback to this day.
In spring 2020 it was the turn of CS with Bad News.
A year ago, the FT reported for the first time about an intertwined triangular relationship between SoftBank, Greensill and the big bank.
Softbank, a Japanese multi-finance company with a flamboyant founder, was able to use Greensill funds to steer CS money from Swiss PKs into their own start-ups in their Vision Fund.
The FT headlines startled Gottstein and his top risk people.
For the newly elected CEO, however, the Greensill funds were no longer unknown at that time.
Until his election as CEO in February 2020, Gottstein was responsible for the bank’s Swiss unit.
The division was the largest distributor of the Greensill funds, says an insider. The systems ended up mainly with customers of SUB, the Swiss Universal Bank von Gottstein.
Was that the reason why Gottstein relied on Greensill in spite of the brightly shining alarm lights?
How dangerous the situation is for CS was shown yesterday.
The German authorities have filed criminal charges against the Greensill Bank there. The banking supervisory authority placed the money house under official control.
The FT had previously reported that US investors were examining the greensill fillet pieces. The rest of Greensill Capital could go bankrupt.
The CS customers were upset yesterday. To calm things down, the bank created a question-and-answer catalog. This should explain the advisors what threatens customers with Greensill investments. It’s about billions.