Brenna Hughes Neghaiwi

ZURICH (Reuters). Credit Suisse (SIX) The bank announced Wednesday that it will not be addressing matters related to the collapse and reorganization of Greensill-linked supply chains finance funds (SCFF), when asking shareholders for discharges from liabilities.

Credit Suisse suffered a loss of 1.6 billion Swiss Francs in 2021 partly due to a $5.5 Billion hit by the collapse of Archegos, an investment fund that was dissolved on March 31st.

Its reputation also suffered from the September collapse of $10B in supply-chain finance funds that were linked to an insolvent British financier Greensill. The company is still trying recover investors funds.

Inquiries were conducted by the bank into both of these matters. The bank released a damning report, July, on “a lackadaisical attitude towards risk” and “a lackof accountability”, behind Archegos’ loss. However, in surprise, it said that it wouldn’t publish its Greensill Report in January.

The bank stated that the report will not be published due to “the ongoing process of recovering investors’ funds, legal complexities in the SCFF case, and an ongoing regulatory investigation conducted by FINMA.”

“It does not recommend that discharge be proposed in respect of this matter before the relevant processes are fully concluded.”

Directors can be found responsible under Swiss corporate law for grossly negligent or willful violations of duties. Shareholders are asked to release them each year from any legal liability for previous years.

Approval of the vote does not waive directors’ and management’s liability. It only applies to facts which have been made public to shareholders, and to claims by shareholders.

Credit Suisse pulled an agenda item from the 2021 AGM that asked shareholders to approve the management of its investigations into two scandals.

After investor opposition, the board announced it would request shareholders to discharge executives and board members of all liabilities in 2020 and 2021. However, this will not include matters related to Greensill funds.

Credit Suisse stated that in March it was approached by Ethos Foundation (a pension fund adviser) and others to conduct a special audit on Greensill-linked funds.

The company stated that it will provide this information to Credit Suisse during the week beginning April 4. However, the special audit was not necessary at the moment because Credit Suisse believes that any additional disclosure could prejudice the outcome of recovery proceedings.