Watchdog to investigate downfall of 'potentially criminal' companies

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The UK's financial watchdog has launched an investigation into the fall of Liberty Steel backer Greensill Capital.The Financial Conduct Authority (FCA) said the allegations were raised. "Might be criminals" about the financial company's failure situation.Liberty Steel owner GFG has been trying to raise funds since Greensill failed in March, putting 3,000 jobs at risk.It happened when David Cameron faced a question about lobbying for Greensill.The former prime minister said he regretted sending messages to ministers, including Prime Minister Rishi Sunak, but insisted he did not violate government rules regarding lobbying.


'Number of allegations'

In a letter to Mel Stride, chairman of the slotland Treasury Committee in FCA's Council of Executives, Nikhil Rathi said the investigation was looking into Greensill Capital, a subsidiary of Greensill Capital Securities and the subsequent supervision by Mirabella Advisers.There are allegations in the media about the Greensill failure situation, some of which may constitute a criminal offense," Raty said.Therefore, there are certain aspects of FCA's interaction with Greensill that I cannot disclose so as not to jeopardize these ongoing investigations.He added: "We are partnering with other UK enforcement and regulatory bodies as well as with a number of overseas jurisdictions".

Greensill is the main financial sponsor of Liberty Steel, which employs 3,000 people in England, Scotland and Wales.However, it collapsed after insurers refused to renew coverage for the Greensill loan.Investors in the fall include Swiss banking giant Credit Suisse and 26 German cities.German regulators are investigating subsidiary Greensill Capital Greensill Bank over balance sheet anomalies.In the UK, MPs opened a hearing on Greensill's fall and heard evidence from company founder Lex Greensill on Tuesday.Mr. Greensill, who in early 2010 worked as a paid consultant for Cameron in Downing Street, told the Treasury Committee that he "Full responsibility" for the collapse of the company

He said he "It is deeply regretful that thousands of hard workers have lost their jobs", adding that he "Take full responsibility" for the difficulties faced by the company's customers and their suppliers.It is very regrettable that our top insurers were disappointed by the collapse of Greensill," said Mr. Reinsill.He said that before Greensill failed, the company had provided financial services to businesses in more than 150 countries.Those people weren't doing business with me because of our brand," he said. "They did business with us for one and only reason, they had a better deal with us than they would get from their bank. he"He adds that Greensill has failed "so there is clearly a flaw in our business," but it takes real-time data out of corporate accounting systems and uses that information to make credit decisions. "Of course is the future


Cameron faced criticism.

Mr Cameron, who took on a role at Greensil Capital in 2018, two years after leaving office, faced criticism for using private contacts with ministers and government officials in an attempt to win business for. Green Silk Capital In 2020, he lobbied an unsuccessful minister to allow Greensill to issue government-sponsored loans as part of the Corporate Covid Financing Facility (CCFF), a program to help large companies through the epidemic.The newly released documents show that he and his employees sent 45 emails, texts and WhatsApp messages on Greensill between March 5 and June 26, 2020.Mr Cameron has refused to lobby the code of conduct or rules of the government.