Connect with us

Business

The insurance call that toppled Greensill – Financial Times

Tokio Marine’s decision to end coverage sparked desperate response from ailing finance group

Published

on

Article feature image

As with AIG in 2008, once again it is insurance — the supposedly sober, even sleepy, side of finance — that is key to understanding the Greensill crisis.
In supply chain finance, a large company such as Vodafone would tell its suppliers that, rather than wait weeks for their invoices to be paid by the telecoms group, they could get much faster payment from Greensill Capital, at a small discount.
Greensill would pay the supplier and later accept a slightly larger payment from Vodafone. The supplier…

Click here to view the original article.