Greensill Woes Deepen as Germany Shutters Bank Unit
- BaFin asks law enforcement to probe Greensill’s German bank
- Regulator shutters lender after irregularities found
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Germany’s financial watchdog shuttered Greensill Bank AG and asked law enforcement officials to investigate accounting irregularities at the lender, compounding the woes of its parent company as it seeks to stave off a collapse that it says could prompt corporate defaults and job losses.
Regulator BaFin on Wednesday said it closed the Bremen-based lender for business after finding irregularities in how Greensill Bank booked assets tied to a key client of Greensill Capital, British industrialist Sanjeev Gupta. A spokesman for the prosecutors confirmed that the regulator filed a criminal complaint, without elaborating.