Billionaire Greensill’s German Bank Draws Regulatory Scrutiny

(Bloomberg) — When billionaire Lex Greensill won an $800 million investment from the SoftBank Vision Fund last year to develop new technology and expand his trade-finance empire, the bulk of the money went to a small, unprofitable German lender.

Greensill Bank, a 93-year-old firm known as NordFinanz Bank AG until the Australian financier bought it in 2014, suddenly found itself flush with capital. The size of its balance sheet increased more than seven-fold while it offered above-market interest rates to attract deposits that it would then invest in assets sourced by its parent, Greensill Capital.



Balance Sheet Leap


© Bloomberg
Balance Sheet Leap

The growth of the Bremen-based bank has attracted the scrutiny of Germany’s main regulator as well as its deposit-insurance program, according to people familiar with the matter. They worry that too many of the assets on the bank’s books are ultimately tied to the same source: British-Indian entrepreneur Sanjeev Gupta.

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How COVID-19 Is Making a Stronger Case for Automating Finance > CEOWORLD magazine

The economic impact of COVID-19 is like nothing we’ve seen in recent memory, and many CEOs and CFOs are laser-focused on ensuring their financial houses are in order. This leads to an operational strategy that prioritizes short-term needs — such as cash flow — over longer-term strategy. However, COVID-19 and the subsequent shift to remote work have actually made an even stronger case for automation and paperless processes in finance departments everywhere.

Is now the right time to invest in automation?

Given the massive economic uncertainty caused by the COVID-19 pandemic, many executives would say “no.” In fact, 50% of CFOs intend to scale back or delay planned investments, and prevailing wisdom says this is a time for tightening the belt and circling the wagons rather than investing in transformative tech. But what if that’s actually holding you back?

Technology has been critical throughout the pandemic, helping companies pivot to

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Indian Companies Raise Record $31 Billion Equity Capital in Shrinking Economy | Investing News

By Scott Murdoch and Patturaja Murugaboopathy

HONG KONG/BENGALURU (Reuters) – Indian companies have raised a record $31 billion in equity capital in 2020, Refinitiv data showed, as banks strengthen their balance sheets to prepare for future economic uncertainty and corporates tap into the elevated global liquidity levels.

The record raising comes despite India’s economy contracting 23.9% in the June-quarter, year on year, which puts it on track for the first annual contraction since 1980.

The rush of deals though has not been extended to initial public offerings (IPOs), which have fallen to a five-year low to be worth just $1.5 billion, in the eight months year to date, the data showed.

(Graphic: Indian companies’ equity offerings, https://fingfx.thomsonreuters.com/gfx/mkt/xlbvglmewpq/equity%20offerings.jpg)

Banks have been the most active issuers, raising $13.68 billion, followed by the energy and power sector with $7.05 billion, and consumer products with $3.41 billion.

(Graphic: FII investments this year, https://fingfx.thomsonreuters.com/gfx/mkt/rlgvdoqzapo/FII%20investments.jpg)

Reliance

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