(WSJ) Credit Suisse has ended a long-term lending relationship with SoftBank Group and its CEO Masayoshi Son.
The decision for the two institutions to slash lending relationships is due to the collapse of SoftBank-backed Greensill capital, which pushed Credit Suisse into turmoil.
The loss of $5.5 billion by Credit Suisse, which was due to trading by family office Archegos Capital Management also triggered the end of the relationship.
Credit Suisse also ended its relationship with SoftBank as its corporate customer.
In February, Masayoshi Son had approximately $3 billion in the company, which he used as collateral with Credit Suisse.
Regulatory filings also reveal that Masayoshi maintains significant share pledges with other banks.
Credit Suisse will now mandate businesses having deals with SoftBank to be subjected to thorough approvals and risk checks.
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