Source · Select Committees · Public Accounts Committee
Recommendation 19
19
On 12 October 2020, the Bank launched an investigation into Greensill’s compliance with the CLBILS...
Conclusion
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 the GFG Alliance; in addition to a loan made in July to SIMEC International (UK) Limited, another GFG Alliance company.54 The Bank told us that it was “very surprised” when it realised that £350 million of Greensill’s £400 million lending allocation had gone to GFG Alliance companies, as the Bank had set the limit for group lending at £50 million. Moreover, the Bank told us that it had explicitly communicated the group lending rules to Greensill, using British Steel as an example to explain that the lending limit would be £50 million for the whole group, not per subsidiary.55