Scandal and sunlight will end trade finance party

Carillion

05/03/2021 11:06

(The authors are Reuters Breakingviews columnists.  The
opinions expressed are their own.)
    By Liam Proud and Neil Unmack
    LONDON, March 5 (Reuters Breakingviews) - The collapse of
Greensill has highlighted risks in the $1.3 trillion supply
chain finance market. The crisis will make investors and
companies more wary of the funding tool, and force tougher rules
on disclosure and accounting. That points to a smaller, more
boring business.
    Full view will be published shortly.
    On Twitter https://twitter.com/liamwardproud,
https://twitter.com/Unmack1
    
    CONTEXT NEWS
    - Germany's financial watchdog on March 3 imposed a
moratorium on Greensill Bank, stopping the lender from making
disposals or payments.
    - BaFin said an audit found that the lender, owned by
SoftBank-backed supply-chain finance group Greensill Capital,
could not provide evidence of receivables on its balance sheet
purchased from mining tycoon Sanjeev Gupta's GFG Alliance. 
    - Swiss asset manager GAM on March 2 said it would wind down
a fund linked to Greensill Capital, a day after Credit Suisse
froze its own funds linked to the company.   
    - Greensill has filed for insolvency protection in Australia
and may also do so in Britain, according to several media
reports. The company is also in talks with private equity giant
Apollo Global Management over a sale of parts of the business.  
    - Greensill declined to comment.
    - For previous columns by the authors, Reuters customers can
click on  PROUD/ ,  UNMACK/ 
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German watchdog puts Greensill Bank on hold due to risk concerns
    urn:newsml:reuters.com:*:nL5N2L15TX
Switzerland's GAM closes fund linked to Greensill Capital   
 urn:newsml:reuters.com:*:nL5N2L046V
World Supply Chain Finance Report     https://bcrpub.com/system/files/WSCF21.pdf
BREAKINGVIEWS-Finance pioneer Greensill hit by old-school risks 
   urn:newsml:reuters.com:*:nL5N2KZ5RY
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Editing by Peter Thal Larsen and Karen Kwok)
 ((liam.proud@thomsonreuters.com; Reuters Messaging:
liam.ward-proud.thomsonreuters.com@reuters.net
neil.unmack@thomsonreuters.com; Reuters Messaging:
neil.unmack.thomsonreuters.com@reuters.net))