NIGHT76 USAF E-4B Nightwatch departed MacDill AFB north
02-5001 USAFSOC C-32B departed Eglin AFB west
morning all
Habby Friday
Credit Suisse Cuts Ties With SoftBank After Greensill Crisis
Credit Suisse Group AG is cutting ties with SoftBank Group Corp., distancing itself from a key backer to Lex Greensill’s collapsed supply-chain finance empire after conflict of interest allegations.
The Swiss lender will no longer do any new business with the Japanese firm, people with knowledge of situation said, asking not to be identified because the matter is private. The decision may ripple across Credit Suisse’s investment bank: SoftBank has been a prolific deal-maker and last year Credit Suisse and other banks held about $8 billion of SoftBank shares in collateral, pledged by founder Masayoshi Son. It is unclear how long the ban lasts for, or whether it impacts any ongoing deals. Credit Suisse is reviewing its risk and client relationships after being hit by the twin collapses of Greensill and Archegos Capital Management. New Chairman Antonio-Horta Osorio has pledged a wide-ranging review after the bank was forced to suspend billions of dollars of funds it managed with Greensill and took a $5.5 billion hit on Archegos, raising questions about the oversight of key clients.
A Tokyo-based spokesperson at SoftBank Group wasn’t immediately available to comment, while Credit Suisse declined to comment. The overlapping financial relationships had raised questions whether SoftBank was using the Credit Suisse funds to prop up investments in the Vision Fund, including Greensill Capital, in which it had a substantial stake. SoftBank wrote down its $1.5 billion holding of Greensill to close to zero after Credit Suisse was forced to wind down its four Greensill-linked funds in March, people familiar with the matter earlier said. SoftBank is now seeking $1.15 billion in claims as part of Greensill’s insolvency proceedings.
Credit Suisse marketed its popular supply-chain finance funds as among the safest investments it offered, because the loans they held were backed by invoices usually paid in weeks and the funds were insured. But as the funds grew into a $10 billion strategy, they strayed from that pitch and much of the money was lent through Greensill against expected future invoices, for sales that were merely predicted. The firm’s collapse forced Credit Suisse to liquidate the funds, and investors finally payment is still uncertain.
Credit Suisse conducted an internal review into the Greensill funds after allegations of possible conflicts of interest involving SoftBank last year. A number of SoftBank portfolio companies received loans via supply-chain funds at Credit Suisse, while SoftBank was also an investor in the Credit Suisse funds. In the aftermath, SoftBank pulled $700 million out of the funds and the bank also changed its investment guidelines for Credit Suisse’s to reduce the maximum exposure to a single borrower.
https://www.bnnbloomberg.ca/credit-suisse-cuts-ties-with-softbank-after-greensill-crisis-1.1609827
Morgan Stanley nears full ownership of China ventures with stake buys
Morgan Stanley is buying stakes put up for sale by its partner in their China securities and mutual funds joint ventures for about $150 million, according to a statement by the partner, moving towards full ownership of the businesses.
The Wall Street bank joins several other foreign banks that are looking to take full ownership of their Chinese businesses after Beijing scrapped foreign ownership limits in the securities and mutual fund industry on April 1 last year. Outright ownership could allow foreign banks to expand their operations in the multitrillion-dollar Chinese financial sector, and better integrate them with their global businesses.
Morgan Stanley’s partner Shanghai Chinafortune Co said on Friday it is selling a 39% stake in Morgan Stanley Huaxin Securities and its entire 36% stake in Morgan Stanley Huaxin Fund Management Co to the Wall Street bank through the Shanghai United Assets and Equity Exchange. The deal, which still requires regulatory approval, means Morgan Stanley will own 90% of the securities joint venture – which houses the bank’s mainland investment banking and trading businesses – while Chinafortune will maintain a 10% stake.
The Wall Street bank will now own 85% of the funds business. Goldman Sachs signed a pact in December to buy out its securities joint venture partner, taking it to the forefront of the list of foreign banks that want to own those types of businesses. The deal is still awaiting regulatory signoff.
JPMorgan, which holds 71% of its securities business, and Credit Suisse too have flagged they would like full ownership of their businesses.
https://www.reuters.com/article/china-morgan-stanley/update-1-morgan-stanley-nears-full-ownership-of-china-ventures-with-stake-buys-idUSL2N2NF19Q
Irish, Dutch, French and Germans leaving Lisbon EU Foreign Minister meetings
EU weighs Belarus sanctions at sectors close to leader
European Union nations sketched out plans Thursday for new sanctions against Belarus, targeting economic sectors close to its authoritarian leader, as they sought to strike back at him for the diversion of a passenger jet to arrest a dissident journalist. Meeting in Lisbon, EU foreign ministers vowed to continue ramping up pressure on Belarusian President Alexander Lukashenko
https://www.stltoday.com/news/world/eu-weighs-belarus-sanctions-at-sectors-close-to-leader/article_31cd509b-bb0e-575e-8b0d-abcb7ae33472.html
UAFAP Portuguese AF Drone also up (this one pretty common)