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December 23, 2021updated 05 Jan 2022 12:28pm

Credit Suisse dismiss employees following Greensill probe

Credit Suisse has reportedly fired staff and has fined a number of its employees following a review of into the explosion of its Greensill-linked supply chain finance funds.

The Swiss banking giant launched an internal probe in the aftermath of the scandal. The Swiss bank was associated with selling around $10bn worth of Greensill-created securities through its asset management unit.

Credit Suisse filed its preliminary findings on the Greensill matter to the regulators, Reuters reported.

The bank said in an emailed statement to the news agency: “Based on the preliminary findings of the investigation which have been shared with the regulators, Credit Suisse has taken action with regards to various individuals.

“These actions include termination of employment and severe monetary penalties via compensation adjustments. External investigations are still ongoing.”

Credit Suisse did not divulge the names and the number of employees affected by its action. It did not comment on when the findings of the Greensill probe would be made public.

Meanwhile, a report by Swiss financial blog Inside Paradeplatz said that the Zurich-headquartered bank had fired two managers within its asset management division in connection with the findings of the probe.

In October this year, the Swiss police reportedly raided Credit Suisse’s offices in connection with an investigation into Greensill and seized documents linked to the collapse of its fund range that financed Greensill’s supply-chain.

In March, Swiss regulator FINMA announced a probe into the bank’s Greensill losses and the corresponding supply chain finance fund.

FINMA also launched enforcement proceedings against the bank in connection to the collapse of US-based hedge fund Archegos.

Credit Suisse was struck by Archegos explosion, just over a month after the Greensill scandal broke out.

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