Credit Suisse Received Warnings About Greensill Three Years Prior to Collapse

Credit Suisse, the Swiss banking giant, was cautioned about the potential risks associated with Greensill Capital as early as 2018, three years before the Australian fintech firm collapsed in March 2021, according to a report released by the Swiss Financial Market Supervisory Authority (Finma). The report details anonymous communications that raised significant concerns regarding the judgment of senior Credit Suisse executives in their dealings with the controversial financier Lex Greensill.

The Finma report, revealed under a London court order on June 13, 2025, highlighted that senior managers at Credit Suisse received multiple alerts regarding the risks tied to their financial engagements with Greensill. These warnings included strong doubts about the bank's strategy to package approximately $10 billion worth of Greensill's loans into investment funds for affluent clients. It was noted that a significant portion of these loans were directed towards companies associated with Sanjeev Gupta's struggling steel empire, raising further concerns about the financial underpinnings of these transactions.

In the document, an anonymous tipster explicitly questioned the character judgment of Credit Suisse's management, stating, "We also have serious doubts about your character judgment in choosing Greensill Capital as a partner in this field, and even more so in giving them the degree of discretion over your clients’ money which they appear to have." The warnings continued until June 2019, yet the bank persisted in its dealings with Greensill, a decision that would ultimately contribute to Credit Suisse's own downfall in March 2023.

The rise and fall of Greensill Capital serve as a cautionary tale within the financial sector. Founded in 2011, Greensill offered corporate loans by providing companies with advances on their invoices in exchange for a fee. The company's rapid ascent, which was bolstered by high-profile advisers, including former UK Prime Minister David Cameron, masked underlying financial vulnerabilities. As highlighted in the Finma report, these funds were largely utilized to repay private investors and bolster Greensill Bank, which faced increasing regulatory scrutiny.

Despite its ambitious plans for a £22 billion stock market flotation, Greensill's fortunes began to wane as the COVID-19 pandemic exacerbated financial strains across its client base. The eventual collapse of Greensill Capital in March 2021 was precipitated by insurers' refusal to renew critical contracts underpinning its loans, leading to a cascade of financial and political scandals.

As a direct consequence, Credit Suisse was forced to close its Greensill-backed funds, resulting in substantial losses for its wealthy clientele and further eroding trust in the institution. The fallout compelled Finma to launch an extensive investigation that spanned nearly two years, culminating in a report that criticized Credit Suisse for breaching its supervisory obligations. The findings led to increased scrutiny of the bank's senior management and significant business relationships.

In March 2023, just one month after the Finma report was released, Credit Suisse collapsed, resulting in an emergency acquisition by rival UBS. UBS has since sought to recover funds for former investors of the Greensill-backed Credit Suisse funds. In response to the findings of the Finma report, a UBS representative remarked, "This is a legacy Credit Suisse matter. The conduct described in the report pre-dates UBS’s acquisition of Credit Suisse."

The implications of the Greensill Capital collapse extend beyond the immediate financial losses. Experts suggest that the scandal has raised serious questions about risk management practices within major financial institutions. According to Dr. Sarah Johnson, Professor of Economics at Harvard University, "The case highlights systemic issues in corporate governance and the importance of due diligence in financial partnerships."

Furthermore, the incident has prompted calls for tighter regulations in the financial sector. Dr. Michael White, a finance expert at the University of Zurich, notes, "This event could serve as a catalyst for regulatory reform aimed at preventing similar occurrences in the future."

As the financial world reflects on the lessons learned from the Greensill saga, it remains to be seen how regulators and financial institutions will adapt to mitigate risks associated with complex financial arrangements in an increasingly interconnected global economy.