BaFin files complaint against Greensill Bank

Wednesday, 03. March 2021 16:48

The German Federal Financial Supervisory Authority (BaFin) confirmed on Wednesday it had imposed a moratorium on Greensill Bank as "there is an imminent risk that the bank will become over-indebted" and filed a criminal complaint against its management over suspected balance sheet manipulation.

"The moratorium had to be ordered to secure the assets in an orderly procedure," BaFin explained. It added it had filed a complaint following the results of its investigation into the bank's operations.

Earlier in the day, it was reported the bank's owner Greensill Capital would file for insolvency after Credit Suisse Group AG and GAM Investments withdrew their funding over concerns about its real valuation. Meanwhile, Credit Suisse said it would return excess cash to investors from Greensill Capital's supply chain financing (SCF) funds.

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