An American pension fund is suing Credit Suisse over failures related to the recent collapses of supply chain funds with Greensill and family office-hedge fund Archegos.
The City of St. Clair Shores Police & Fire Retirement System, a Michigan-based pension fund, filed a class action lawsuit in a Manhattan-based federal court alleging that the Swiss bank had violated federal securities laws, «Reuters» reported.
«Specifically, defendants concealed material defects in the Company's risk policies and procedures and compliance oversight functions and efforts to allow high-risk clients to take on excessive leverage,» the news agency reported, citing the lawsuit.
Credit Suisse is grappling with the fallout from the $10.1 billion shutdown of Greensill supply chain finance funds and a $4.7 billion loss booked from the downfall of Bill Hwang’s hedge fund-style family office Archegos.
