The Swiss bank is reportedly severing its relationship with Japanese conglomerate Softbank, following blow-up of $10.1 billion in supply chain funds managed with Greensill.

Zurich-based Credit Suisse is distancing itself from Softbank by not doing any new business with the firm founded and run by Masayoshi Son, «Bloomberg» (behind paywall) reported on Friday, citing people familiar with the bank's thinking. A spokesman for Credit Suisse declined to comment.

The ban appears to be part of a broader review under new Chairman António Horta-Osóriowho pledged to look at risk, strategy, and culture first when he took over last month. Along with other banks, Credit Suisse held roughly $8 billion in Softbank's shares last year as collateral, the news agency reported.

Pre-Existing Problems

The relationship between the two has raised alarm bells before: Softbank withdrew last July from a knotty set of circular ties with Credit Suisse, Greensill, and start-ups the Japanese firm had invested in. It isn't clear how long Credit Suisse's current ban on Softbank will endure or what ongoing business it might interrupt.

Softbank was a vocal backer as well as investor in Lex Greensill – a relationship which cooled when the Australian banker's firm, Greensill Capital, collapsed in March. Credit Suisse had set the insolvency into motion when it pulled the plug on a $10.1 billion line of supply chain funds it and Greensill had co-managed.