Amid reported interest for Credit Suisse's troubled asset management arm, a coterie of securities lawyers are settling in on various sides.
The blow-up of Credit Suisse's $10.1 billion range of supply chain funds is quickly becoming a legal matter: George Kintis of Britain's Alcimos said he is preparing a grouped claim for damages against Credit Suisse, «Sonntagsblick» (in German) reported.
Alcimos, which describes itself as exploiting opportunities created by dislocations in the financial services space,» is working together with Quinn Emanuel Urquhart & Sullivan's Volker Rosengarten in Zurich, as well as Genevan firm Chabrier and Strelia in Luxembourg. Swiss law doesn't provide for class-action lawsuits akin to U.S. securities law.
No Damage Tally
The firm aims to group small numbers of plaintiffs, Kintis told Swiss tabloid on Sunday. It isn't clear how or where the group would lodge a complaint – nor has Credit Suisse officially disclosed the damage. The Swiss bank is reportedly leaning towards playing hardball with the wealthy clients who lost money on Greensill's funds.
At least three other firms – Pomerantz, and according to the «Financial Times» Lalive in Zurich and New York-based Boies Schiller Flexner – are looking into the case. The U.S. firm's appearance is interesting: Credit Suisse apparently didn't sell the troubled funds in the U.S. market.
Suitors Sniff Around
The legal feast comes as suitors sniff around the asset management business at the heart of Credit Suisse's Greensill troubles, according to «Reuters». These include Blackrock, a SPAC overseen by former Unicredit boss Jean-Pierre Mustier, State Street, and DWS, the news agency reported.
It quoted a Credit Suisse spokeswoman saying the bank had no plans to sell part or all of its asset management business. «Reuters» quoted sources saying the Swiss bank, where Lloyds boss António Horta-Osório is due to take over as chairman in three weeks, isn't yet conducting in-depth discussions with any of the parties.
Regulator Issued Warned
Meanwhile, Swiss weekly «Sonntagszeitung» (behind paywall, in German) reported that Credit Suisse had been warned over Greensill by its regulator, Finma, at least twice. Outgoing Finma CEO Mark Branson had spoken to both Credit Suisse's Chairman, Urs Rohner, and to CEO Thomas Gottstein at at working meeting, the outlet reported.
Finma's concern stemmed from asset manager GAM's problems with Greensill, which emerged publicly in 2018. The Bern-based regulator's concern was heightened when its German counterpart, Bafin, began investigating Greensill's Bremen-based bank mid-2020, according to the report.
The outlet didn't disclose when the Swiss regulator first intervened, nor what the content of the ultimately futile warning was. «Sonntagszeitung» also reported that Lara Warner, Credit Suisse's head of risk as well as compliance until she resigned effective immediately last week, is is line for roughly 8 million Swiss francs ($8.7 million) of deferred bonus pay, without citing its sourcing.
