Finance Industry Braces for Post – Greensill Backlash
Geoffrey Wynne was quoted in the article, "Finance Industry Braces for Post – Greensill Backlash," [sub. req.] published by Financial Review.
The article discusses the aftermath of the collapse of financial services company, Greensill. Greensill collapsed quickly and spectacularly in the week of March 1, as its complex business model unravelled following the withdrawal of a key insurer. That in turn prompted a shutdown of support at financial giant Credit Suisse, whose funds had bankrolled Greensill’s operations.
Geoff comments “What Greensill had is in effect a series of different products within a platform. And in that there was the good, the bad and the ugly. What we’re seeing is likely to be the ugly."
The industry expects that the accounting standards bodies will step up their previously glacial work on new rules that shine a torch onto companies’ trade-finance practices." If you reclassify all payables as debt on a balance sheet you do destroy the product. Because it is not debt and should be treated differently,” said Geoff.