Finance

Credit Suisse looks to recover Greensill losses through more insurance claims

Credit Suisse is looking to file additional insurance claims to recoup some of its losses after the collapse of supply chain finance firm Greensill Capital.

Investors were notified of the claims, which were first reported by Reuters, in a question and answer document sent to those with money in the bank’s supply chain finance funds.

A section of the Q&A document, reviewed by Financial News, says that a first insurance claim has been filed and Credit Suisse Asset Management is currently preparing to file additional claims through Greensill Bank and with the assistance of Greensill Capital UK.

READ How the Greensill scandal could have left taxpayers on the hook for £335m

The section notes that insurance companies have been notified that certain insured notes have defaulted, but that the bank must wait for “pertinent waiting periods” to expire under the policies before any funds could be returned, and will bring in specialised legal advice to do so.

The document provides no further details of the claims, and a spokesperson for the Swiss banks offered no further comment.

After Greensill’s collapse in March, investors in a suite of Credit Suisse supply chain finance funds were potentially left on the hook for some $10bn.

READ Greensill scandal spotlights risks of non-bank finance sector

Reuters reports that that $6.1bn had been recovered by early July, and that as at the last payment in August, investors had been repaid some $5.9bn. The recoveries are expected to cost the bank $145m this year, the news agency adds.

Bloomberg reports that the latest round of disbursements to investors, Credit Suisse’s fourth, took place on 6 August and returned $400m to clients.

To contact the author of this story with feedback or news, email Justin Cash

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