The Library of Mistakes Ep 8: Lex Greensill and the Pyramid of Lies (with Duncan Mavin)
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Sep 13, 2022 AI Snips
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Bank Acquisition Used As A Shell Game
- Greensill bought a small German bank to access deposits and hide problematic loans from fund investors.
- He used the bank as a parking place for loans that might otherwise attract scrutiny.
Ratings Provided False Comfort
- Rating agencies and auditors gave partial comfort while downplaying concentrated exposures.
- Scope flagged exposures but stopped short of calling them company-threatening red flags.
How The Investigation Began
- Duncan Mavin began investigating after a source handed documents linking Greensill to the GAM scandal.
- The documents exposed loans and relationships that others had ignored, prompting deeper digging.