Credit Suisse sacks staff after review into Greensill funds collapse

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ZURICH (Reuters) – Credit Suisse (SIX:CSGN) has sacked staff and imposed financial penalties on a number of individuals following a review into the collapse of its Greensill-linked supply chain finance funds, the bank said on Wednesday.

Switzerland’s second-largest bank earlier this year initiated the investigation after the collapse of $10 billion supply chain finance funds that bought notes issued by Greensill, the British finance company which filed for insolvency in March.

Credit Suisse said it had shared its preliminary findings on the Greensill matter with regulators.

“Based on the preliminary findings of the investigation which have been shared with the regulators, Credit Suisse has taken action with regards to various individuals,” the bank said in an emailed statement.

“These actions include termination of employment and severe monetary penalties via compensation adjustments. External investigations are still ongoing.”

Swiss financial blog Inside Paradeplatz earlier on Wednesday reported that Credit Suisse had dismissed two managers within its asset management division due to the probe’s findings.

Credit Suisse declined to comment on the number of staff affected by its latest actions. The bank did not name any of the staff.

In July, Credit Suisse published a separate external review conducted into another scandal that rocked the bank at the same time. This blamed a “lackadaisical” attitude towards risk and “a lack of accountability” for the bank’s $5.5 billion loss on investment fund Archegos.

Credit Suisse declined to comment on when the findings of the Greensill investigation would be published.