Swiss authorities have reportedly raided the offices of Credit Suisse and confiscated papers related to the collapse of the bank's $10 billion supply chain finance (SCF) funds, which were tied to Softbank-backed Greensill.
According to reports, the raids were conducted by police last week after the commencement of criminal proceedings against Greensill by the Zurich Public Prosecutor's Office. The prosecutor’s actions were apparently in response to a criminal complaint filed by the Swiss government's economic affairs secretariat (SECO).
Its investigation supposedly focuses on how Credit Suisse marketed and managed the funds that financed the highly-controversial lending schemes of Greensill.
Credit Suisse acknowledged to City AM that its offices had been searched but stated that the inquiry was not focused on the bank.
According to the global investment bank and financial services firm, data was gathered at Credit Suisse in the course of an official procedure that was not aimed against Credit Suisse, the bank stated that Credit Suisse will completely cooperate with the investigators and will not make any more remarks on this matter for the time being given that it is an ongoing investigation.
SECO has filed a criminal case against the bankrupt financier Greensill Capital for suspected unfair competition law breaches.
the body launched its lawsuit against ‘unknown persons’, which allows the prosecutor's probe the potential to extend at any time to individuals and corporations who have yet to be named.
The move comes after the asset management unit of Credit Suisse suspended a $10 billion portfolio of assets in March connected to Softbank-backed Greensill, which went into bankruptcy after accusations of misconduct and a lobbying scandal that involved former UK Prime Minister, David Cameron.
Although the Swiss lender has recovered almost $7 billion of the fund's assets thus far, it has previously calculated that approximately $2.3 billion remains at risk.
Credit Suisse riled up its clients, who are already coping with billions of dollars in losses from failing supply chain finance funds by disclosing that it plans to drop an additional $145 million bill on them this year, part of which it is utilizing preserve Greensill Capital.