Liberty Steel parent named in banking probe

An audit of Greensill Bank, which is a source of funding for steelmaker GFG Alliance, has resulted in regulators shutting down daily business at the lending institution - potentially prompting headwinds for GFG and its Liberty Steel USA subsidiary.

The Federal Financial Supervisory Authority, known as Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), issued a moratorium on disposals and payments for Greensill Bank, citing “an imminent risk that the bank will become over-indebted.” BaFin examined the bank’s books, and auditors were “unable to provide evidence of the existence of receivables in its balance sheet that it had purchased from the GFG Alliance Group,” according to a news release from the financial authority on Wednesday March 3. BaFin has since “taken extensive measures” to secure Greensill Bank’s liquidity and to limit the bank's...


March 05, 2021

08:54 GMT