The article makes it sound like Gupta defrauded Greensill, which figured out they had been defrauded and then covered it up. But they dont come out and say that, just mention names and throw in a picture of Wework. Frustrating reporting!
https://www.ft.com/content/44c47737-5d8b-4aca-8ff3-dbcc8349b...
The main issue seems that Greensill has a (very) large exposure to the collective 'network' of Gupta's companies, and regulators / counterparties decided this was too risky. Supply chain financing has a bit of a record for being used to prop up failing companies in their dying days by disguising borrowings.
If your bank is carrying your mortgage on their books at x10 it's actual value you wouldn't have any idea, would you? This is one of the reasons that financial audits typically include a letter sent to random customers asking to confirm whether the balance of their account or loan matches the value recorded in the bank's system.
As far as I'm aware, it's more along the line of your bank giving you a mortgage for x10 your appraisal, which is definitely going to put you in the hot seat when the bank gets put under the spotlight.
>This is one of the reasons that financial audits typically include a letter sent to random customers asking to confirm whether the balance of their account or loan matches the value recorded in the bank's system.
Interesting to point this out in the context of multi-billion dollar Wirecard fraud, which FT also covered. EY was their auditor, and apparently never took this basic step.