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By Neil Hodge2021-05-20T17:19:00+01:00
The collapse of Greensill Capital has led to a series of investigations into how the company got into the financial mess it did and why alarm bells didn’t ring. But one investigation is noticeably conspicuous by its absence why the company wasn’t properly regulated in the first place.
Especially when you consider Greensill’s failure could end up costing the U.K. government £5 billion (U.S. $7.08 billion).
The very name of the company and the nature of its business providing payment services including factoring and supply chain financing so that companies could receive cash injections while waiting for clients to pay up would lend itself to the belief the firm was part of the financial services industry and should duly come under the oversight of the U.K.’s Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA). But no.