Greensill Offices, Board Members’ Homes Raided in Germany

(Bloomberg) -- Greensill Bank AG's German offices and the homes of board members were raided by prosecutors in the city of Bremen investigating accounting irregularities linked to the demise of the lender.

Searches in the bank's offices started last week and are continuing, said Frank Passade, a spokesman for prosecutors. Investigators on Tuesday also raided the homes of some of the five suspects in the probe.

“The raid continues as long as we say it continues,” Passade said. “This gives us the opportunity to get into the bank's offices whenever we need it.”

Greensill collapsed in March in one of the most spectacular financial blow-ups of recent years after key backers walked away over concerns about the valuation of its accounts. In Germany, a group of lenders that runs a deposit insurance fund is seeking 2 billion euros ($2.4 billion) from Greensill Bank. Uninsured depositors such as municipalities also want their money back.

The five suspects are members of Greensill Bank's last management board and two previous members of that panel, Passade said.

A spokesman for Greensill Bank's administrator declined to comment.

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