Lessons from Greensill Capital Contents

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Contents

Summary

1 Introduction

Background to our inquiry

Greensill Capital

Our inquiry

Other inquiries and investigations

2 Lessons for the financial system

Greensill Capital and Supply Chain Finance

Supply chain finance

Accounting for supply chain finance

Greensill’s funding model

“Prospective receivables” or future receivables

Concentration risks and the GFG Alliance

The failure of Greensill Capital

Regulatory failure?

Appointed representatives regime

Financial stability implications

Trade credit insurance

Regulatory perimeter

Wider lessons for financial regulation

Non-bank finance

Wyelands Bank and Change of Control

Other regulatory lessons

Use of supply chain finance

Use of supply chain finance in Government

Pharmacy Early Payment Scheme (PEPS)

Earnd

3 Lobbying

Outline of events

3–4 April

Pushed?

The call for evidence and a final effort

Rt Hon David Cameron’s lobbying

Introduction

His role at Greensill

Familiarity

Reform

Intelligence on Greensill

Greensill and SMEs

Greensill as a fintech

Assessing the financial health of Greensill

Reputational issues

Time spent on Greensill’s proposals

Coronavirus Large Business Interruption Loan Scheme (CLBILS)

Overall conclusions

Chapter 4: Other matters raised by our inquiry

Cost to government

Treasury’s knowledge of the system

The Permanent Secretary’s mobile phone

Government records?

The impact of transparency around lobbying

Formal minutes

Witnesses

Published written evidence

List of Reports from the Committee during the current Parliamentary session