On March 3rd, 2021, the Federal Financial Supervisory Authority (BaFin) issued a moratorium on the bank conducting business, banning it from making or receiving payments, or to control deposits.
Despite Greensill Bank benefiting from a A- rating, BAFIN followed up with the moratorium by placing the bank in to bankruptcy protection on the 16th of March 2021.
Normal deposits up to 100,000 and up to €500,000 under certain conditions, are protected by the Einlagesicherungsfond / deposit protection scheme. As a result the scheme paid €2.7Bn to more than 20,500 depositors of the bank.
Securities and investments are not protected by the protection scheme, but we don’t think that any Greensill had any meaningful securities business for clients.
Southey Capital is able to assist creditors that wish to sell their claim in Greensill Bank, and can either provide a bid to clients or run an auction process for them to establish a price for their claim.
We would recommend all creditors to consider a sale, as from our experience, liquidations of banks can last a very long time.