Yahoo Finance FCA investigates Greensill as David Cameron’s lobbying texts are made public
The UK’s financial regulator has launched a formal investigation into the collapse of Greensill Capital, as David Cameron’s text message lobbying of serving ministers in an efforts to save the controversial bank were made public for the first time.
In one text message at the beginning of the pandemic Cameron said he was “riding to the rescue … with my new friend Lex Greensill”.
In other calls and emails over a four-month lobbying campaign he told ministers and their adviser that the Treasury’s failure to provide financial support to Greensill was “nuts” and “bonkers”.
Related: Greensill inquiry: David Cameron and founder to give evidence to MPs
Cameron worked for Greensill as a senior adviser and owned a 1% stake in the bank, which was at one point hoping to float at a $7bn (£5bn) valuation and would have turned the former prime minister into a multimillionaire.
The chief executive of the Financial Conduct Authority (FCA) said on Tuesday that the regulator was “formally investigating matters relating to Greensill Capital UK”.
“We are also cooperating with counterparts in other UK enforcement and regulatory agencies, as well as authorities in a number of overseas jurisdictions,” Nikhil Rathi, the FCA chief executive, said in a letter to parliament’s Treasury select committee.
Cameron messaged the chancellor, Rishi Sunak, the Cabinet Office minister, Michael Gove, the health secretary, Matt Hancock, and the vaccines minister, Nadhim Zahawi, according to documents related by the Treasury committee.
Watch: Greensill appearance a ‘sad day’ for David Cameron
Cameron has denied breaking any code of conduct or government rules and the government has repeatedly said the outcome of his discussions on Greensill’s proposals for access to a Covid-19 loan scheme were not taken up.
One of Cameron messages on 3 April 2020 to Gove read: “I know you are manically busy – and doing a great job, by the way (this is bloody hard and I think the team is coping extremely well. But do you have a moment for a word? I am on this number and v free. All good wishes Dc.”
On the same day, Cameron sent a separate message to the chancellor asking for a “very quick word” on the Treasury refusal to grant access to the Covid Corporate Financing Facility (CCFF). “HMT are refusing to extend CCFF to include supply chain finance, which is nuts as it pumps billions of cheap credit into SMEs,” Cameron wrote. “Think there is a simple misunderstanding that I can explain.” After arranging a discussion with Sunak, the former prime minister messaged Gove: “Am now speaking to Rishi first thing tomorrow. If I am still stuck, can I call you then?”
In another message to Tom Scholar, the permanent secretary at HM Treasury, Cameron said in reference to the financial panic at the start of the pandemic that he was “riding to the rescue with supply chain finance with my new friend Lex Greensill – my job”.
Cameron told Scholar that he “never quite understood how [interest] rate cuts help a pandemic”. He added that he hoped to “see you with Rishi’s for an elbow bump or foot tap. Love Dc.”
On 22 April, the former Conservative leader texted Sunak to apologise “for troubling you again” but asking if he could help on CCCF and if he could “give it another nudge over the finish line”. He kept going though, and asked “for the last time, I promise” for Sunak to instruct senior Treasury official Charles Roxburgh for another look at the matter.
Greensill will appear before a committee of UK lawmakers later on Tuesday, his first public appearance since the company filed for administration in March. The collapse of Greensill Capital has jeopardised 5,000 UK steelmaking jobs, as the bank was key lender to Liberty Steel.
Greensill Capital, which operated by lending money to firms by buying their invoices at a discount, collapsed in March 2021 after insurers pulled their cover.
Watch: Every chance David Cameron will be hauled back before MPs to answer more questions
