Skip to content

A Credit Suisse Unit Blacklisted Gupta as Another Bankrolled Him

  • Commodity unit, wary of Gupta, stopped deals in 2016
  • In 2017, asset-management unit created funds that lent to him
Video player cover image
WATCH: Credit Suisse ignored internal warnings about Sanjeev Gupta.(Source: Bloomberg)

Credit Suisse Group AG executives ignored warnings from colleagues about troubled steel tycoon Sanjeev Gupta as they channeled $1.2 billion of client funds to his businesses, according to people familiar with the matter.

Bankers in Credit Suisse’s commodity trade-finance unit blacklisted Gupta’s Liberty Commodities Ltd. in 2016 because they suspected some of its deals weren’t legitimate, the people said. When they learned about two years later that the bank was lending to his companies through a suite of investment funds, which eventually grew to $10 billion, they flagged their worries to leaders in compliance and the division that housed the loans, one of the people said.