Credit Suisse sacks staff after examining Greensill fund collapse

ZURICH, Dec.22 (Reuters) – Credit Suisse (CSGN.S) has laid off staff and imposed financial penalties on a number of people following a review of the collapse of its channel funding funds supply linked to Greensill, the bank said on Wednesday.

Earlier this year, Switzerland’s second-largest bank opened the investigation after the $ 10 billion collapse of supply chain finance funds that bought banknotes issued by Greensill, the UK financial firm that filed its balance sheet in March. Read more

Credit Suisse said it has shared its preliminary findings on the Greensill affair with regulators.

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“Based on the preliminary findings of the investigation which have been shared with regulators, Credit Suisse has taken action regarding various individuals,” the bank said in an emailed statement.

“These actions include termination of employment and severe financial penalties via compensation adjustments. External investigations are still ongoing.”

Swiss financial blog Inside Paradeplatz reported on Wednesday that Credit Suisse had fired two managers in its asset management division due to the findings of the investigation.

Credit Suisse declined to comment on the number of employees affected by its latest actions. The bank did not appoint any staff.

In July, Credit Suisse published a separate external study on another scandal that rocked the bank at the same time. This blamed a “lackadaisique” attitude towards risk and a “lack of responsibility” for the bank’s $ 5.5 billion loss to the Archegos investment fund.

Credit Suisse declined to comment on the release date of the Greensill investigation findings.

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Reporting by Brenna Hughes Neghaiwi. Editing by Jane Merriman

Our Standards: Thomson Reuters Trust Principles.

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