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Credit Suisse said Friday it was repaying another $400 million to investors who placed money in funds linked to the collapsed British financial firm Greensill.
It is the fourth instalment of payments that have now totalled $5.9 billion, the Swiss bank said.
Credit Suisse had some $10 billion of investors’ funds placed in Greensill, which specialised in short-term corporate loans via a complex and opaque business model that ultimately led to the company’s demise in March.
Credit Suisse has recovered $6.1 billion as Greensill is liquidated.
The bank has also been rocked by the bankruptcy of US hedge fund Archegos, which cost Credit Suisse $5.5 billion.
Chairman Antonio Horta-Osorio, who built a solid reputation in having turned around British bank Lloyds, took over at Credit Suisse in late April, pledging to make risk management an immediate priority.
An independent external investigation into the Archegos fiasco found a failure to manage risk effectively at Switzerland’s second biggest bank.
The bank has taken sanctions against two dozen people, including the dismissal of nine people and financial penalties such as the cancellation of bonuses and the clawback of previously paid amounts. An investigation into the Greensill affair is expected to end in the third quarter.
Greensill Capital was a financial services company based in the United Kingdom and Australia. It focused on the provision of supply chain financing and related services. The company was founded in 2011 by Lex Greensill. It filed for insolvency protection on 8 March 2021.
