The request “was going to be impossible for us to comply with,” Mr. Greensill said. It packaged the invoices and other receivables by the suppliers into assets that were then sold to investors through funds. The company also provided financing to companies based on “future receivables,” which were based on transactions that hadn’t yet happened. In Tuesday’s hearing, held virtually, Mr. Greensill strongly defended the business model. “I bear complete responsibility for the collapse of Greensill Capital,” Mr. Greensill said, adding that he was “desperately saddened” that more than 1,000 of his employees had lost their jobs.

Source: New York Times May 11, 2021 22:07 UTC