Credit Suisse Investors Seek Special Audit of Greensill Debacle

Credit Suisse Group AG shareholders proposed a special audit over the collapse of a group of supply chain finance funds it ran with now-defunct Greensill Capital, after the bank refused to publish an internal report on the matter, Bloomberg News reported. The lender urged shareholders to vote against the proposal at the bank’s annual general meeting next month, saying it could complicate efforts to recover investor money that remains locked up more than a year after it was frozen. The audit is being proposed by the Ethos Foundation and seven Swiss pension funds. At the same time, Credit Suisse excluded the Greensill matter from a vote of discharge for the past two years, meaning top management won’t be off the hook for their responsibility in the matter for the time being, according to the agenda for the meeting, published Wednesday. Credit Suisse had initially hoped to present key findings last year from an internal report into the collapse of the $10 billion group of investment funds, but later decided it won’t publish it for fear of hurting recovery efforts. The Greensill scandal, along with losses from the collapse of Archegos Capital Management, dealt Credit Suisse its worst year since the financial crisis and prompted a management and board shakeup. Read more.
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