LONDON, United Kingdom — The collapse of Greensill Capital
has sparked a political scandal in Britain and cast a light on a shadowy world
of finance.
Outlined are the main political and financial personalities
caught up in the affair:
David Cameron
Former British prime minister David Cameron, who resigned
his premiership after backing the losing horse in the 2016 Brexit referendum,
is the biggest name dragged into the scandal.
An adviser to Greensill after leaving office, Cameron
privately lobbied senior UK government officials, including finance minister
Rishi Sunak, for state support before the firm’s business model of supplying
interim finance to companies imploded.
Cameron, whose bumper Greensill shares have become
worthless, is most directly in the firing line because of his personal and
undeclared lobbying. He denies any impropriety.
Lex Greensill
Lex Greensill, the Australian financier who in 2011 founded
the London-headquartered Greensill Capital, obtained inside access to the
Downing Street machine during Cameron’s spell as prime minister.
This after offering to advise the government on financial
technology.
Greensill, the 44-year-old son of sugar cane planters, has
been largely silent since his group went bankrupt.
His company, which bypassed strict regulations forced upon
traditional banks, specialized in short-term corporate loans via a complex and
opaque business model that ultimately sparked its declaration of insolvency
last month.
Sanjeev Gupta
The Indian-British billionaire and his GFG Alliance steel
empire have both been rocked by the Greensill collapse.
Not only has it been suggested that thousands of
steel-sector jobs are at risk due to GFG having been Greensill’s biggest
client, the affair has shone a light on Gupta’s own criticized business
practices.
The UK government last month refused GFG a rescue package
totaling £170 million.
That came as Britain’s business minister Kwasi Kwarteng
described the GFG structure as “very opaque”.
Investors
Some of the world’s biggest banks have become caught up in
the scandal.
It was creditors including Credit Suisse and the Association
of German Banks who on Thursday placed the Australian parent of Greensill
Capital into liquidation.
Switzerland’s second-largest bank — rocked also by the bankruptcy
of US hedge fund Archegos — has been forced to suspend four funds with an
exposure to Greensill totaling $10 billion.
In Japan, Softbank is counting the cost after investing $1.5
billion in Greensill two years ago.
And the Association of German Banks counts losses of 2
billion euros after investing communities’ money with the Bremen-based
subsidiary of Greensill.
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