UBS resolves Greensill lawsuit with IAG over CS credit-risk claims

The Swiss bank UBS has reached a confidential settlement with Swiss insurer IAG in a high-profile lawsuit stemming from the collapse of Greensill Capital, resolving a dispute involving former Credit Suisse entities over unpaid credit-risk exposures. The agreement follows the UBS acquisition of Credit Suisse in March 2023 and follows up on earlier settlements in the broader Greensill litigation, which has weighed heavily on the bank’s reputation and financial reporting since the 2021 failure of Greensill Capital, the Australian fintech founder Lex Greensill’s investment firm. The total claims from Credit Suisse’s supply-chain financing funds against IAG’s former subsidiary BCC Trade Credit amounted to approximately 2.8 billion Australian dollars (about 1.6 billion Swiss francs), including accrued interest, according to IAG’s statement. The resolution comes just days before an Australian court hearing was scheduled to begin next week, following reports of intensive negotiations between the parties. UBS confirmed in a statement that the settlement aligns with its goal of resolving legacy issues ‘quickly and in the best interest of its stakeholders,’ though it declined to disclose further details. The agreement may also impact UBS’s third-quarter 2026 financial reporting, as disclosed by a source familiar with the matter to Swiss media outlet AWP. The Greensill case centered on the bundling of discounted credit-risk exposures by Greensill Capital, which were later held in Credit Suisse’s supply-chain financing funds. In 2021, following Greensill Capital’s collapse, Credit Suisse halted new investments in those funds, which had amassed over 10 billion dollars in assets. IAG had previously denied the claims, arguing that its subsidiary BCC Trade Credit had sold the relevant exposures before the disputes arose. While IAG stated that the settlement would not materially affect its financial statements, it had already reached agreements with several other claimants in the Greensill litigation earlier this year. A separate case involving investment firm White Oak remains unresolved. The Greensill scandal remains a key legacy issue for Credit Suisse, which was acquired by UBS amid extensive regulatory scrutiny and reputational damage. The settlement marks another step in the bank’s efforts to address its exposure to the failed fintech firm’s activities.