Credit Suisse in Hot Water

The fall of Greensill Capital is spelling trouble for Credit Suisse and its customers as the company is expecting to lose $2 billion of a $10 billion investment into the company.

Based in the United Kingdom and Australia, Greensill Capital made a name for itself by focusing primarily on supply chain financing, unfortunately, the company found itself in hot water and ended up declaring bankruptcy causing customers to lose a total of $10 billion of supply chain financing funds.

The damage has spread to other areas of the financial realm as Credit Suisse has stated that the company will force some of the burden of the lost money on their clients. Out of the $2 million that Credit Suisse will likely lose, $291 million of that will be placed onto consumers of Credit Suisse’s services.

Credit Suisse is also preparing extensively for what will likely become several long-drawn-out legal battles. Clients of Credit Suisse have been outraged, especially considering that many of the investments into Greensill were described by credit Suisse financial advisers as low risk and fully backed by insurance.

Credit Suisse is still attempting to recover as much of the lost money as possible, however, to do so is costing the company a significant sum to gain assistance from outside parties.

Source: Financial Times