Credit Suisse raided by Swiss police over Greensill funds.
It comes as no surprise at all that the long arm of the Swiss Police is now feeling the collar of Credit Suisse over the Greensill affair. The bank, of course, is somewhat reticent in accepting any responsibility for the undoubted debacle but as it had to tap investors for a couple of billion over both Greensill and Archegos Capital management. In addition it has infuriated investors by its action in suspending $10billion of (supposed) supply chain funds invested in Greensill paper. How much money was actually lost globally is anyone’s guess but Credit Suisse is reckoned to have over $2.3billion at risk. Under the circumstances perhaps a little humility and introspection might be deemed appropriate but Credit Suisse will not be making any further comment. After all there is an investigation going on. Apparently the investigation relates to how the Credit Suisse funds were managed and marketed so nothing to do with the bank. According to London’s Financial Times it had ranked the funds as low risk financial products. One wonders what high risk products would look like
Barclays entering “Buy now pay later” market
It looks like Barclays and a handful of others think they can make money in the fast growing BNPL market. Certainly one of the market leaders Klarna is expanding rapidly and it is a market that is very attractive to “must have it now” type consumers. However much mainstream players would like a piece of the action I would caution against two rather obvious risks. The first is the old as the hills fact that some of the punters taking out this type of arrangement will get themselves into some kind of financial problems and will not be able to pay their bills. The second is that the financial regulators in quite a few countries are taking a close look at the consumer protection side of all this the thinking being that it could lead some people to become overstretched. My bet would be that some kind of regulation is going to come along sooner or later.
Monzo gives up on US gambit for now?
The British based App only bank Monzo has withdrawn its application for a banking licence in the US. The bank which has tested its banking app with Ohio based Sutton bank admitted this “isn’t the outcome we set out to achieve”. I would say there is a degree of understatement to that as talks with the US regulators have been going on since April 2020. It highlights the difficulties that start up banks have in gaining a banking charter in the US but perhaps it also shines a light on the conservatism of the US authorities. The reasons for the withdrawal of the application are not stated but there has to be a suspicion that Monzo’s financial results might be partly to blame. In the financial year ending on Feb 28th. this year Monzo reported losses of £ 130million on revenues of £66 million which prompted an audit qualification concerning its going concern status. Revolut Monzo’s rival app based competitor also submitted an application to the US authorities in March. It remains to be seen whether this will be successful.
Howard Tolman is a well-known banker, technologist and entrepreneur in London,We have a self imposed constraint of 3 news stories per week because we serve busy senior Fintech leaders who just want succinct and important information.For context on Alt Lending please read the Interview with Howard Tolman about the future of Alt Lending and read articles tagged Alt Lending in our archives.
Daily Fintech’s original insight is made available to you for US$143 a year (which equates to $2.75 per week). $2.75 buys you a coffee (maybe), or the cost of a week’s subscription to the global Fintech blog – caffeine for the mind that could be worth $ millions.
Credit score Suisse raided by Swiss police over Greensill funds.
It comes as no shock in any respect that the lengthy arm of the Swiss Police is now feeling the collar of Credit score Suisse over the Greensill affair. The financial institution, after all, is considerably reticent in accepting any accountability for the undoubted debacle however because it needed to faucet buyers for a few billion over each Greensill and Archegos Capital administration. As well as it has infuriated buyers by its motion in suspending $10billion of (supposed) provide chain funds invested in Greensill paper. How a lot cash was really misplaced globally is anybody’s guess however Credit score Suisse is reckoned to have over $2.3billion in danger. Beneath the circumstances maybe a little bit humility and introspection could be deemed acceptable however Credit score Suisse is not going to be making any additional remark. In spite of everything there may be an investigation occurring. Apparently the investigation pertains to how the Credit score Suisse funds have been managed and marketed so nothing to do with the financial institution. In accordance with London’s Monetary Occasions it had ranked the funds as low threat monetary merchandise. One wonders what excessive threat merchandise would appear like
Barclays getting into “Purchase now pay later” market
It appears to be like like Barclays and a handful of others assume they’ll earn a living within the quick rising BNPL market. Actually one of many market leaders Klarna is increasing quickly and it’s a market that may be very engaging to “will need to have it now” kind shoppers. Nevertheless a lot mainstream gamers would really like a bit of the motion I might warning towards two reasonably apparent dangers. The primary is the outdated because the hills indisputable fact that among the punters taking out any such association will get themselves into some type of monetary issues and will be unable to pay their payments. The second is that the monetary regulators in fairly just a few international locations are taking a detailed have a look at the patron safety facet of all this the pondering being that it may lead some individuals to develop into overstretched. My wager could be that some type of regulation goes to return alongside in the end.
Monzo provides up on US gambit for now?
The British primarily based App solely financial institution Monzo has withdrawn its software for a banking licence within the US. The financial institution which has examined its banking app with Ohio primarily based Sutton financial institution admitted this “isn’t the result we got down to obtain”. I might say there’s a diploma of understatement to that as talks with the US regulators have been occurring since April 2020. It highlights the difficulties that begin up banks have in gaining a banking constitution within the US however maybe it additionally shines a lightweight on the conservatism of the US authorities. The explanations for the withdrawal of the applying are usually not said however there needs to be a suspicion that Monzo’s monetary outcomes could be partly in charge. Within the monetary yr ending on Feb 28th. this yr Monzo reported losses of £ 130million on revenues of £66 million which prompted an audit qualification regarding its going concern standing. Revolut Monzo’s rival app primarily based competitor additionally submitted an software to the US authorities in March. It stays to be seen whether or not this can be profitable.
Howard Tolman is a widely known banker, technologist and entrepreneur in London,We’ve got a self imposed constraint of three information tales per week as a result of we serve busy senior Fintech leaders who simply need succinct and vital data.For context on Alt Lending please learn the Interview with Howard Tolman about the way forward for Alt Lending and browse articles tagged Alt Lending in our archives.
Each day Fintech’s unique perception is made accessible to you for US$143 a yr (which equates to $2.75 per week). $2.75 buys you a espresso (perhaps), or the price of per week’s subscription to the worldwide Fintech weblog – caffeine for the thoughts that could possibly be value $ tens of millions.