Boom in the City – Greensill debacle catches up with Swiss finance

The London corporate credit virtuoso is on the verge of bankruptcy. GAM and Credit Suisse investment funds are trapped.

In ten years, Australian-born financier Lex Greensill has built an empire, turning the management of cash advances for thousands of companies – abandoned by banks – into an investment product.

Bloomberg.com (screenshot)

La new debacle that shaken the City and the Geneva financial center this week echoes in a disturbing way the “subprime” crisis of 2007.

She is triggered by the fall of thebuilt paper empire by Lex Greensill, a Australian fromvenu virtuose of the credit market.

Banks leave a void

His speciality? “Re-invoicing”, a boring banking service consisting in releasing advances for a few weeks to companies. By example, in order to allow of supermarkets to immediately pay for stocks delivered by their dozens of suppliers.

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