Greensill Bank Failure Dubbed Fraud

Epsilon Theory: The Best Way to Rob a Bank

I think that the collapse over the past week of Greensill Capital has a lot of systemic risk embedded within it, particularly as the fraudulent deals between Greensill and its major sponsors – Softbank and Credit Suisse – come to light. And that’s not even considering Greensill’s second tier of sponsors – entities like General Atlantic and the UK government – all of whom are up to their eyeballs in really dicey arrangements.

The most important question right now is whether this is a general or specific sign of financial distress.