Credit Suisse, the Swiss bank acquired by the rival UBS in March 2023 to avoid bankruptcy, has presented numerous financial instruments/investment solutions over the years, including many Investment Funds. Among them, almost $10 billion were linked to Greensill Capital, a British company engaged in supply chain financing that filed for bankruptcy in March 2021. 

As a result of Greensill Capital's bankruptcy in 2021, a large number of Credit Suisse Investment Funds (also known as Supply Chain Finance Funds, also the “SCF Funds” see comprehensive list below) suffered a serious collapse in their value, generating severe losses for those who had invested.

Martingale Risk is offering support to recover losses to those who purchased Greensill Capital/Credit Suisse Funds. We will be operating on a full contingent fee basis of the recovered amount, with no anticipated costs, fees or expenses for the clients.

At the root of the collapse of Credit Suisse - SCF Funds was the failure of the business model pursued by Greensill Capital, which consisted of offering anticipated (discounted) payments to suppliers. Theoretically, this solution on the one hand guaranteed immediate payment to suppliers, while on the other hand allowed the client-side to obtain more time to pay its operational debts. However, this scheme exposes the service company in the middle (here Greensill Capital) to the risk of a liquidity crisis due to debtors delaying or even defaulting on payments. All these risks materialized for Greensill Capital, leading to its default and thus involving also Credit Suisse that had financed Greensill Capital's activities by buying from the latter financial instruments issued precisely for this purpose(the “Notes”). Indeed, the underlying of the Notes were exactly the (current or even prospective) payments Greensill Capital expected to receive from its debtors. Naturally, the failure of Greensill Capital's business model led to the collapse of the value of the SCF Funds that Credit Suisse had marketed as safe investments but were actually overexposed to Greensill Capital's Notes.

Recently (11thJune, 2024) UBS, legally responsible for Credit Suisse after the March 2023 acquisition, basically admitted Credit Suisse’s responsibility for the mismanagement of the risks underlying the SCF Funds that lead to their price collapse, by presenting to the market a partial restoration plan for the “Credit Suisse Supply Chain Finance Funds”. In the second quarter 2024, UBS has already set aside around USD 0.9 billion in provisions.

It has to be mentioned that the Swiss Financial Market Supervisory Authority (FINMA) started an investigation in 2021 that, in February 2023, was concluded with the identification of a serious breach of Credit Suisse’s obligations under supervisory law with regard to risk management and adequate business organization related to the Greensill Capital case. Furthermore, FINMA has initiated four enforcement proceedings against former Credit Suisse managers that are currently undergoing. For a similar case, on July 2023 Bank of England’s Prudential Regulation Authority and the Federal Reserve Board imposed a USD 387.5 million fine to Credit Suisse for inadequate risk management and business organization.

Our proposal

Martingale Risk offers support to all the investors that suffered losses having purchased Greensill Capital – Credit Suisse Funds. Please contact the below individuals for a free non-binding preliminary analysis.

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