UBS offers to reimburse former Credit Suisse customers 90% of Greensill funds

Swiss banking giant UBS has offered to pay former Credit Suisse customers 90% of the funds they invested with failed specialist finance firm Greensill Capital.

UBS said the offer, which was launched on Monday, will remain open until July 31 and that it would put by 900 million US dollars (£710 million) in the second quarter to cover costs.

It stressed the provision would have no material impact on UBS.

UBS is looking to close the chapter on a damaging saga that was among a number of scandals that led to the collapse of Credit Suisse and a rescue takeover.

The firm bought its stricken rival last year amid worries that severe losses at Credit Suisse would destabilise the global banking system, prompting the involvement of Swiss regulators.

In early 2021, Credit Suisse found itself exposed to the collapse of UK supply chain finance firm Greensill Capital.

Greensill had supplied loans to many customers.

These were then lumped together and sold off, via a Credit Suisse fund, to outside investors, who would buy a share in the loans and cash in when they were paid back.

These loans were insured, but the firm collapsed when its main insurer – Tokio Marine – decided not to renew the insurance.

UBS said its offer to former Credit Suisse investors affected by the Greensill collapse “aims to give fund investors certainty, an accelerated exit from their positions and a high level of financial recovery”.

“It will allow an early exit from fund investments compared to distributions under the ongoing recovery process,” it added.