Credit Suisse Group said that it made a further $750 million payment to investors in its $10 billion Greensill supply chain finance funds, as it seeks to move past the damaging scandal.
The payment will take the total paid to investors in the funds to $5.6 billion, according to a statement from the bank Friday. The funds' total cash position — including the $4.8 billion already returned — is about $6.1 billion, the bank said.
Credit Suisse marketed its popular supply chain finance funds as among the safest investments it offered, because the loans they held were backed by invoices usually paid in a matter of weeks. But as the funds grew into a $10 billion strategy, they strayed from that pitch and much of the money was lent through Greensill Capital against expected future invoices, for sales that were merely predicted.
The Greensill scandal was the worst of Chief Executive Officer Thomas Gottstein's one-year tenure, before the bank was hit by the even bigger meltdown at hedge fund client Archegos Capital. After Greensill collapsed, Mr. Gottstein replaced asset management head Eric Varvel and removed the business from direct oversight of wealth management.
