"The Bremen public prosecutor's office said the unnamed people were charged with crimes related to the bankruptcy, as well as the misrepresentation of the German bank's finances. The people are alleged to have circumvented banking regulations involving a 2.2bn (1.9bn) refinancing in 2019 of steel plants owned by the Gupta Family Group Alliance (GFG), a struggling group of companies overseen by metals tycoon Sanjeev Gupta. The prosecutors alleged the refinancing caused the collapse of the bank."
"Greensill Bank was founded by Lex Greensill, an Australian financier who rose to prominence by providing supply chain finance, in which companies receive advances on invoices in exchange for a fee. The company rapidly rose to prominence, and hired the former UK prime minister David Cameron as a paid adviser. However, it collapsed in 2021 amid concerns over risky loans to GFG companies."
German prosecutors have charged three people involved in running Greensill Bank with crimes related to the lender's 2021 collapse and the misrepresentation of the bank's finances. The accused allegedly circumvented banking regulations through a 2.2bn (1.9bn) refinancing in 2019 of steel plants owned by the Gupta Family Group Alliance (GFG), and prosecutors allege that refinancing caused the bank's collapse. Two accused were former management board members and one was on the supervisory board. Prosecutors suspect deliberate misrepresentation of the loan business in 2019 accounting records and financial statements as a low-risk, regulatory-compliant receivables purchase programme. Lex Greensill is not among those charged.
Read at www.theguardian.com
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