Credit Suisse 'seriously breached' supervisory obligations in Greensill dealings

Investment banking giant Credit Suisse was said to have "seriously breached its supervisory obligations" in its dealings with financier Lex Greensill and his companies.

According to Swiss regulator FINMA, Credit Suisse failed to adequately identify, limit and monitor risks in its business relationship with Greensill Capital over many years and also stated it had found "serious deficiencies" in the bank's organisational structures" during the period.

Furthermore, FINMA said the embattled Swiss lender did not sufficiently fulfil its supervisory duties as an asset manager - a "serious breach" of the country's supervisory law.

Ulrich Körner, chief executive of CS, which made massive reimbursements to investors after the supply chain finance firm went under back in 2021, said: "This marks an important step towards the final resolution of the SCFF issue. FINMA's review has reinforced many of the findings of the board-initiated independent review and underlines the importance of the actions we have taken in recent years to strengthen our Risk and Compliance culture. We also continue to focus on maximising recovery for fund investors."

As of 1030 GMT, Credit Suisse shares were down 1.52% at CHF 2.79 each.

Reporting by Iain Gilbert at Sharecast.com