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UPDATE 1-Credit Suisse flags possible charge from Greensill fallout

· 03/16/2021 02:22
UPDATE 1-Credit Suisse flags possible charge from Greensill fallout

Adds details and background

- Credit Suisse CSGN.S on Tuesday warned it might incur charges following the collapse of its Greensill-linked supply chain finance funds and other dealings with the specialty firm.

The lender has been facing the fallout from the collapse of $10 billion worth of funds linked to British financial services firm Greensill Capital, which last week filed for insolvency after losing the support of its main backers. nL1N2L822 nL8N2LA5ES

"While these issues are still at an early stage, we would note that it is possible that Credit Suisse will incur a charge in respect of these matters," it said in a statement.

Credit Suisse has paid investors some $3.1 billion in redemptions from the four funds thus far, or just under a third of their value shortly before suspension, and said it would be announcing further cash distributions over coming months.

It has also faced questions over a $140 million bridge loan it made to the group last year, after it had announced a review of the funds.

It has now recovered some $50 million from the bridge loan, it said, leaving its outstanding collateralised loan at $90 million.


(Reporting by Brenna Hughes Neghaiwi; Editing by Michael Shields)

((brenna.neghaiwi@thomsonreuters.com; +41 58 306 77 35;))