Credit Suisse report into Greensill hit by delays

Bloomberg

Credit Suisse Group AG is delaying the publication of findings from a report into the collapse of a $10 billion group of investment funds that it ran together with Greensill Capital.
The bank had initially hoped to present key findings along with its third-quarter results, but will now take longer as executives focus on the implications for their ability to claim back money for fund investors.
The stakes for the bank have been rising after its offices were raided by police over the matter, according to the Financial Times, which reported on the delay on Monday. While neither the bank nor current or former employees are persons of interest in the investigation, prosecutors could name more people or corporate entities as they progress.
Investors in the supply chain finance funds are still waiting for over $3 billion to be repaid, more than half a year after the money pools were frozen. The Swiss lender has shaken up its top management ranks, replaced asset management head Eric Varvel and removed the business from direct oversight of wealth management since it was forced to suspend the funds. Top executives including risk and compliance chief Lara Warner have left, while Chief Executive Officer Thomas Gottstein has held onto his role.
The board of directors discussed a draft of Greensill report that showed many findings were similar to those from a separate report on Credit Suisse’s handling of Archegos Capital collapse.
The supply chain finance funds invested in notes issued by Greensill Capital, a specialty lender that went into administration in March. The bank marketed them as among the safest investments it offered, because the loans they held were backed by invoices usually paid in a matter of weeks. But as the strategy grew, they strayed from that pitch and much of the money was lent through Greensill against expected future invoices, for sales that were merely pitched.
Credit Suisse is still trying to recover $2.7 billion in overdue loan payments. The majority lies with problem borrowers Katerra Inc., Sanjeev Gupta’s GFG Alliance Ltd., and Bluestone Resources Inc. All three are undergoing restructuring processes and the bank has said it needs more time to assess how much of investors’ money it will get back.