Leaked Report Reveals Shocking Lapses at CS in Greensill Scandal
New revelations from a confidential regulator report expose the stunning failures behind one of Switzerland’s biggest financial collapses.
In a bombshell development, over 700 pages of internal investigative documents have been leaked, shedding damning light on the disastrous handling of the Greensill Capital affair at Credit Suisse – an implosion that helped bring down one of Switzerland’s most storied banks.
Published by the Swiss-based «SonntagsZeitung» (behind paywall), the leaked reports reveal what the paper calls «hair-raising details» about how Lex Greensill, the smooth-talking Australian financier, was allowed to run his shaky financial operation virtually unchecked within Credit Suisse.
Business As Usual – Despite the Alarms
According to the leaked reports – originally compiled by Swiss law firm Wenger Plattner on behalf of Swiss financial watchdog Finma, Credit Suisse failed to perform even basic due diligence on Greensill. Standard procedures were deliberately bypassed, and internal warnings ignored, allowing Greensill to embed deeply into the bank’s lucrative but risky supply chain finance business.
Worse still, Credit Suisse struck at least five successive agreements to limit its exposure to Greensill’s most controversial partner, Indian steel magnate Sanjeev Gupta – only to watch Greensill breach every single one.
Stop the Risk – Then Add More
Despite repeated promises to wind down risky trades, Greensill reportedly turned up the pressure behind the scenes. The reports claim he urged Credit Suisse teams to purchase even more debt securities, amplifying the bank’s exposure just as the house of cards was teetering.
At the heart of the scandal are the Greensill funds, which had attracted billions from wealthy CS clients – over $10 billion by the time the structure collapsed. Their liquidation is now seen as a central trigger for Credit Suisse’s demise and its emergency takeover by UBS.
700 Pages of Secrets – Now in Court
The leaked trove includes:
- Two full investigative reports (405 pages)
- 225 pages of raw evidence
- A 92-page summary ruling by Finma detailing what went wrong
These files surfaced publicly during a civil lawsuit in London, where UBS is suing Japan’s SoftBank for over 440 million Swiss francs in damages linked to Greensill-related products. SoftBank, in a bold legal maneuver, submitted the previously confidential Finma material to bolster its defense.
Swiss Legal Fallout Far From Over
Meanwhile, back in Switzerland, prosecutors in Zurich are still digging. Ongoing «unsealing proceedings» have been active since 2021, and questions remain about whether Finma enforcement actions against ex-Credit Suisse executives are still underway or have quietly closed.
UBS, for its part, is staying tight-lipped, refusing to comment on the «Financial Times» report that also highlighted serious failures at Credit Suisse. But it insists it will «continue to pursue the recovery of supply chain finance fund assets in the interest of all stakeholders.»
A Scandal That Won’t Go Away
The Greensill scandal has already rewritten the Swiss financial landscape, destroying Credit Suisse as an independent institution and raising serious questions about regulatory oversight, executive accountability, and client risk exposure in elite private banking.
And with every new leaked document, the picture gets uglier.
