Credit Suisse Issued $140M On Suspicious Bills, Raising Questions On Risk Management Efforts

Credit Suisse Group AG CS provided an emergency $140 million loan to Greensill Capital in October 2020, less than five months before it collapsed.
Invoices issued by Sanjeev Gupta's Liberty Commodities and sold to Greensill formed part of the collateral for the loan, according to documents seen by the Financial Times.
Yet several parties named on the invoices have told the FT they did no business with Liberty.
Related: Credit Suisse - A 'New Company Is Emerging,' Says BofA While Upgrading Stock.
The apparent failure to spot suspicious invoices casts fresh light on risk management failures at Credit Suisse and raises new questions about the practices at Greensill and Liberty.
The commodities company is part of Gupta's GFG Alliance, which is being probed by the UK's Serious Fraud Office and French police over suspected fraud and money laundering.
Credit Suisse accepted the bills as collateral even after commodities trader Trafigura warned the bank that Liberty Commodities appeared to have raised financing through Greensill using a suspicious invoice.
Price Action: CS shares closed at $3.37 on Friday.