Lessons from Greensill Capital
Public Accounts Committee
Closed
Inquiry
In response to the COVID-19 pandemic the government launched a series of schemes providing financial support to businesses of all sizes. Of these, the Coronavirus Large Business Interruption Loan Scheme (CLBILS) provided support to the largest businesses—those with a minimum turnover of £45 million. Commercial lenders (for example, banks, building …
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9
Recommendations
19
Conclusions
1
Report
2
Oral sessions
4
Letters
2
Events
Activity timeline 8 events
9 Mar
2022
2022
21 Jan
2022
2022
18 Jan
2022
2022
20 Nov
2021
2021
16 Nov
2021
2021
22 Jul
2021
2021
Oral evidence
6 Jul
2021
2021
13 May
2021
2021
Oral evidence
Oral evidence sessions 2 sessions
22 Jul 2021
View on parliament.uk
Lessons from Greensill Capital
Catherine Lewis La Torre · British Business Bank
Charles Roxburgh · HM Treasury
Patrick Magee · British Business Bank
Sarah Munby · Department for Business, Energy and Industrial Strategy
Sir Tom Scholar · HM Treasury
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| Twenty-Sixth Report - Lessons from Greensill Capital: accreditat… | HC 169 | 20 Nov 2021 | 28 | Responded |
Recommendations & Conclusions
6 results
1
Conclusion
Acknowledged
Twenty-Sixth Report - Lessons from…
On the basis of a report by the Comptroller and Auditor General, we took evidence...
On the basis of a report by the Comptroller and Auditor General, we took evidence from HM Treasury (the Treasury), the Department for Business, Energy & Industrial Strategy (the Department), and the British Business Bank (the Bank) about the involvement …
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Government Response
The government provides a detailed overview of the COVID-19 business support schemes and Greensill's involvement, acknowledging the context for the Committee's report.
HM Treasury
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11
Conclusion
Acknowledged
Twenty-Sixth Report - Lessons from…
The NAO found that the Bank treated Greensill’s application like other similar applicants, but that...
The NAO found that the Bank treated Greensill’s application like other similar applicants, but that the Department was particularly interested in Greensill’s accreditation. The Bank applied the same accreditation and due diligence process to Greensill as it did to the …
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Government Response
The government acknowledges the committee's point and is updating the Shareholder Relationship Framework Document, as part of which it will consider changes regarding operational independence and departmental correspondence with the Bank. It will inform the Committee of the outcome of its considerations.
HM Treasury
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12
Conclusion
Acknowledged
Twenty-Sixth Report - Lessons from…
The Department told us that it had requested updates on when a decision would be...
The Department told us that it had requested updates on when a decision would be made about accrediting Greensill so that it could decide whether it needed to create a “separate bespoke solution … [if] the process was ultimately going …
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Government Response
The government acknowledges the committee's point and is updating the Shareholder Relationship Framework Document, as part of which it will consider changes regarding operational independence and departmental correspondence with the Bank. It will inform the Committee of the outcome of its considerations.
HM Treasury
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18
Conclusion
Acknowledged
Twenty-Sixth Report - Lessons from…
Greensill lent a total of £418.5 million under the government’s COVID-19 business support schemes between...
Greensill lent a total of £418.5 million under the government’s COVID-19 business support schemes between July and October 2020. Of this, Greensill lent £400 million under CLBILS, the maximum amount it was authorised to lend, through eight loans of £50 …
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Government Response
The government acknowledges the committee's finding by reiterating the total amounts Greensill lent under CLBILS and CBILS.
HM Treasury
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19
Conclusion
Acknowledged
Twenty-Sixth Report - Lessons from…
On 12 October 2020, the Bank launched an investigation into Greensill’s compliance with the CLBILS...
On 12 October 2020, the Bank launched an investigation into Greensill’s compliance with the CLBILS scheme rules. This was 10 days after the Bank first noticed that Greensill had made six CLBILS loans on 30 September to companies associated with …
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Government Response
The government confirms that the Bank launched an investigation in October 2020 into Greensill's compliance with CLBILS rules due to concerns over £350 million lent to GFG Alliance companies, which appeared to contravene the £50 million group lending cap.
HM Treasury
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20
Conclusion
Acknowledged
Twenty-Sixth Report - Lessons from…
The Bank told us that it had acted immediately to protect the taxpayers’ position by...
The Bank told us that it had acted immediately to protect the taxpayers’ position by preventing Greensill from making any further loans under the schemes.56 The Bank engaged Ernst & Young (EY) between October 2020 and March 2021 to examine …
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Government Response
The government acknowledges the Bank's actions, stating the loan guarantees remain suspended during the ongoing investigation and outlining the potential maximum liability if the guarantee is reinstated.
HM Treasury
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Correspondence 4 letters
9 Mar 2022
Correspondence from Catherine Lewis La Torre, Chief Executive, British Business Bank, re British Business Bank (the Bank) review, dated 2 March 2022
Parliament page
18 Jan 2022
Correspondence from Sarah Munby, Permanent Secretary, Department for Business, Energy & Industrial Strategy, re PAC recommendations – “Lessons from Greensill Capital”, dated 13 January 2022
Parliament page
16 Nov 2021
Correspondence Catherine Little, Director General, Public Spending Head of Government Finance Function, re Lessons from Greensill Capital, dated 7 September 2021
Parliament page
6 Jul 2021
Correspondence from RT David Cameron, Former prime minister of the United Kingdom, re follow up to Greensill, dated 25 June 2021
Parliament page