Expand / Collapse search
Watch TV
Menu

This material may not be published, broadcast, rewritten, or redistributed. ©2024 FOX News Network, LLC. All rights reserved. Quotes displayed in real-time or delayed by at least 15 minutes. Market data provided by Factset. Powered and implemented by FactSet Digital Solutions. Legal Statement. Mutual Fund and ETF data provided by Refinitiv Lipper.

Europe

Credit Suisse lodges $440 million London claim against SoftBank

Credit Suisse still determined to recover outstanding money from collapse of about $10B in client funds

Reuters
Published
close
Fox News Flash top headlines for April 19 Video

Fox News Flash top headlines for April 19

Fox News Flash top headlines are here. Check out what's clicking on Foxnews.com.

Credit Suisse has lodged a $440 million claim against Japan's SoftBank Group Corp in London as it presses ahead with formal proceedings in a dispute borne from the failure of Greensill Capital, a finance firm.

The Swiss lender is trying to recover client funds that Greensill had lent to Katerra, a SoftBank-backed U.S. construction group that filed for bankruptcy in 2021. SoftBank has vowed to vigorously fight the claim.

The collapse of Greensill, along with a string of scandals, helped dent confidence in the 167-year-old Swiss bank. When turmoil hit the global banking industry in March, the Swiss government engineered a takeover by its rival UBS to "secure financial stability and protect the Swiss economy".

But Credit Suisse remains determined to salvage outstanding money from the collapse of about $10 billion in client funds linked to financier Lex Greensill's supply chain finance firm, that imploded two years ago.

CREDIT SUISSE: IMPERILED GLOBAL INVESTMENT BANK HAS CCP-TIED OFFICIAL ON RISK COMMITTEE

Credit Suisse logo

A view shows the logo of Credit Suisse on a building near the Hallenstadion where Credit Suisse Annual General Meeting took place, two weeks after being bought by rival UBS in a government-brokered rescue, in Zurich, Switzerland, on April 4, 2023. (Reuters/Kim Kyung-Hoon)

CLICK HERE TO GET THE FOX NEWS APP

It has alleged that SoftBank was aware of a Katerra restructuring in 2020 that effectively placed Credit Suisse's investor assets out of reach, according to court documents filed in the United States in 2021.

A SoftBank spokesperson accused Credit Suisse of trying to shift blame for its own poor investment decisions and said the case was entirely without merit.

"Credit Suisse continues to prioritize maximising recovery for investors in the supply chain finance funds," a spokesperson for the Swiss lender said.

The documents were filed in London's High Court earlier this month.

Credit Suisse is the biggest name to date to become ensnared in market turbulence unleashed by the collapse of U.S. lenders Silicon Valley Bank and Signature Bank.