The Swiss giant warns of a loss from a default by a US-based hedge fund on margin calls that it and other banks made last week.
Administrators told the first meeting of creditors that no ‘rescue package’ or deed of company arrangement had been put forward to save the group from liquidation.
Credit Suisse Group froze four more funds that invested in the bank’s $US10 billion ($12.9 billion) supply chain finance strategy,adding to the widening scandal surrounding the bank’s exposure to Greensill Capital.
The funds’ troubles are a blow for Credit Suisse boss Thomas Gottstein,who became chief executive in the aftermath of a spy scandal and just as the coronavirus crisis struck.
A senior source at Credit Suisse says the bank was not told by Greensill about the group’s long running insurance issues.
Greensill Capital is struggling for survival after its financial engineering started to fall apart.
Greensill Capital is considering filing for insolvency after Credit Suisse Group froze $US10 billion worth of investment funds that the trade finance firm had relied on as buyers of the debt securities it issues.
The case dates to 2008 when prosecutors opened a probe into a Bulgarian wrestler who they allege had turned to drug trafficking.
UBS chairman Axel Weber has been studying the feasibility of a mega-merger with rival Credit Suisse that would create a Swiss banking giant.
A year after an employee was chased through the streets of Zurich by detectives,the saga has refused to go away.
Climate advocates cautiously welcomed the government’s climate policy,but warn its lack of a concrete emissions target is a risk to international commitments.