News

Credit Suisse spotted early signs of trouble brewing at Greensill Capital

The firm is in talks to sell its core business to Apollo Global Management for a fraction of its peak valuation

Credit Suisse Group knew since 2019 that supply-chain finance funds it ran with Greensill Capital were too reliant on a small group of insurers to protect investors against default and failed to remedy the situation, according to people familiar with the funds.

That turned out to be a ticking time bomb, and when the insurers balked at renewing contracts on 1 March, Greensill began its swift implosion.

WSJ Logo