Global investment bank Credit Suisse Group AG cut down its lending program to SoftBank Group Corp. and its founder Masayoshi Son.
- Securities filings show that Credit Suisse lending to Son was reduced to zero in May. He has some $3 billion of his shares pledged as collateral in February, with the share pledge loan relationship dating back 20 years.
- Credit Suisse also cut back its lending program to SoftBank as a corporate customer. Any transactions with SoftBank will undergo additional checks and approvals, equated with an unofficial ban on new business.
- Greensill Capital, backed by Softbank, plunged in March. This in turn hit Credit Suisse, which was reeling from the $5.5 billion loss due to the fallout involving Archegos Capital Management.
Credit Suisse in 2020 looked into potential conflicts of interest of around $10 billion it invested with Greensill.
CS is down 1.27% premarket; while 9984 is up 1.89%.
Source: WSJ
