Credit Suisse to return more Greensill money to investors

Credit Suisse said Friday it will return another $750 million (634 million euros) to investors who placed money in funds linked to the collapsed British finance firm Greensill.

It said the funds will be transferred to investors next week.

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 and earlier returned $4.8 billion to investors.

The bank said it expects to recover more funds and further reimburse investors.

The Greensill losses and the bankruptcy of US hedge fund Archegos, to which the Wall Street Journal reported in April that Credit Suisse had $20 billion in financial exposure, have raised pressure on the bank’s executives about its risk management.

A board member quit following the fiascoes and Credit Suisse’s new chairman, the former chief of British bank Lloyds, Antonio Horta-Osorio, told shareholders in April that risk management would be a priority going forward.

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