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Greensill burns U.S. coal boss

3 minute read

West Virginia Governor Jim Justice II puts on a coal miner's hat that he said belonged to his father in Charleston, West Virginia, August 21, 2018. REUTERS/Leah Millis

NEW YORK, June 1 (Reuters Breakingviews) - It isn’t only politicians in Britain who are suffering from the collapse in March of supply-chain lender Greensill Capital. The governor of West Virginia, Jim Justice, could be personally on the hook for $700 million of loans taken out by his coal companies, according to the Wall Street Journal.

The business of helping companies manage trade- and inventory-related cash flow is as old as the Blue Ridge Mountains. Greensill, however, pushed the limits in terms of risk and complexity read more . The comeuppance, triggered by Credit Suisse (CSGN.S) freezing funds that bought Greensill’s loans, has put borrowers such as industrialist Sanjeev Gupta’s steel empire under pressure .

The West Virginia governor’s Bluestone Resources is another company caught in the fallout. If Justice does have to stump up, it’ll be a more tangible hit than the one suffered by former UK Prime Minister David Cameron. Cameron, a paid Greensill adviser, was hauled in front of lawmakers to explain his lobbying during the coronavirus crisis read more . It was embarrassing, but his bank balance will probably remain largely intact. (By Richard Beales)

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