U.K. regulators investigating collapse of $7 B lender

1 minute

- The Financial Conduct Authority of the UK is investigating matters related to Greensill Capital, the lenders that collapsed into insolvency in March, according to a response to questions from lawmakers.

The regulator is investigating 'formally the matters relating to Greensill Capital UK. The FCA Director Mel Stride said a letter to Chair of the Treasury Select Committee, Nikhil Rathi.

Rathi said in the letter that the agency has oversight of some Greensill entities under its separate rules on money laundering and through a separate regulated firm Mirabella Advisers LLP who acted as a representative for Greensill.The FCA was also cooperating with counterparts in U.K.'s other enforcement and regulatory agencies.

The specialty finance firm, which was at one point targeting $7 billion, collapsed after a key insurance partner turned off coverage for loans Greensill had made to a number of its borrowers.Later on Tuesday his first public appearance before a committee of U.K. lawmakers appeared after Lex Greensillwill filed for administration in March.

For more articles like this, please visit bloomberg.com at bloomberg.com.

Subscribe now to stay ahead with the most trusted business news source in the world.

  • Comments
Loading comments...