ERR
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Regulatory/Compliance Failure

Greensill Capital

Supply Chain Finance · Collapsed Mar 2021

$1.75Braised$1.75B raised, Big 4 audit refusal24 monthsadvance warning

Case Summary

Greensill Capital raised $1.75B to reinvent supply chain finance. Concentrated risk in a single insurer, questionable accounting practices, and regulatory investigations across multiple jurisdictions were externally visible for years before collapse.

Peak Signal Scores

Company Filings

10

News & Events

9

Sentiment

7

Funding

6

Workforce

5

Market Position

4

Signal Timeline

Mar 2019WORKFORCE

Senior VP of Risk departs. Not replaced for 6 months.

Jul 2019SENTIMENT

FT reports concerns about Greensill’s reliance on single insurer.

Jan 2020COMPANY FILINGS

BaFin opens investigation into Greensill Bank subsidiary.

Jun 2020COMPANY FILINGS

Third Big Four firm declines audit engagement. Only one willing to sign.

Oct 2020FUNDING

Credit Suisse freezes $10B of supply chain finance funds linked to Greensill.

Feb 2021NEWS & EVENTS

Insurance coverage lapses. Tokio Marine refuses renewal.

Mar 2021COLLAPSE

Greensill files for insolvency.

What ERR Would Have Shown

By mid-2020, three of the Big Four accounting firms had declined Greensill as an audit client. That alone is a red flag with almost no false positive rate. Combined with BaFin’s investigation into the banking subsidiary and the FT’s reporting on single-insurer concentration risk, the signals were clear 12–24 months before collapse. An OP or lender monitoring these signals would have had time to reduce exposure, demand additional protections, or exit entirely.

Current Portfolio Matches

No current portfolio companies match this pattern.