TIMELINE
THE COLLAPSE OF
GREENSILL BANK
When Greensill Bank went into administration on 8 March , it sent shockwaves through communities as the scale of its demise became apparent .
With the efficacy of the UK ’ s FCA now even being called into question for failing to protect investors and businesses , we review the chain of events that have shaken European finance
1 March 2 March
Credit Suisse pulls the plug Market developments force GAM ’ s hand
Greensill ’ s distinctive supply chain finance loans , packaged into securities managed by Credit Suisse , hit a snag when GFG Alliance defaults on a US $ 140m loan citing COVID-19- related economic downturn .
With Greensill now treading water , Swiss asset management firm GAM opts to freeze the company ’ s receivables funds . GAM cites ‘ market developments ’ and media coverage relating to supply chain finance as its reasons .
In response , Credit Suisse closes funds worth $ 10bn . Concerned about Greensill ’ s close link to steel tycoon Sanjeev Gupta , the bank is forced to sell the assets .
Community anxiety regarding job losses begins to mount . Gupta gives assurances that GFG Alliance ’ s funding is adequate .