London Daily

Focus on the big picture.

David Cameron kept pushing Bank and Treasury to risk £20bn to help Greensill

David Cameron kept pushing Bank and Treasury to risk £20bn to help Greensill

Former prime minister sent string of emails to Bank officials and argued firm should be a priority for Treasury funding

David Cameron repeatedly pushed the Bank of England and the Treasury to risk up to £20bn in taxpayer cash to help Greensill Capital, just as the lender started to face “significant” financial pressure at the start of the pandemic.

The UK’s central bank was urged to provide support to Greensill, including by setting up a fund that would buy loans made by the financial services company and its competitors, in a string of emails to senior officials.

In one, Cameron introduced Greensill’s founder to one of the Bank of England’s four deputy governors, Jon Cunliffe.

The exchanges, published by the Bank of England on Thursday afternoon, became increasingly desperate in tone as requests from Greensill for government backing were turned down.

Cameron described the situation as “incredibly frustrating” and complained: “I must be missing something here.”

Late on Thursday, the Treasury released details of a call between Cameron and John Glen MP, the economic secretary to the Treasury. In the readout, copied into top officials, Cameron is said to have argued that supporting Greensill would be “the most effective” way to help the small and medium businesses that relied on it for finance.

The Treasury has also released new text messages between Cameron and Glen, where Glen says the Treasury had decided not to extend the funding to Greensill, but offers a “private call” to explain the decision. The Treasury said it would not be releasing Cameron’s texts to Glen, because of his expectation of privacy.

The disclosures underline the concerted efforts made by Cameron to promote Greensill – approaching ministers, civil servants and officials – over a period of weeks.

In other developments in the deepening lobbying scandal:

*  MPs were told the beleaguered former prime minister had personally lobbied the Treasury’s most senior civil servant, Sir Tom Scholar, and secured nine meetings with another of the department’s key officials.

Scholar, the Treasury’s permanent secretary, told the public accounts committee the former prime minister called and sent “some text messages” to demand help for Greensill.

*  The Cabinet Office launched an investigation into leaked texts from Boris Johnson’s phone to the billionaire James Dyson. He promised to “fix” a tax issue as the company pitched to develop ventilators at the height of the pandemic.

Tory insiders and former officials told the Guardian that informal text communication for government business is commonplace, and has been for several years.

The Bank of England correspondence, released as part of a freedom of information request, shows for the first time the pressure that the former prime minister and his colleagues exerted on central bank officials.

At the time, Greensill was attempting to lobby for access to the government’s largest Covid-support scheme, the Covid corporate financing facility (CCFF), which Greensill ultimately did not quality for.

Cameron and Greensill’s founder and chief executive, Lex Greensill, contacted the bank at least seven times in March and April 2020, even corresponding with officials during weekends, after gaining direct access to Cunliffe, who is the bank’s deputy governor for financial stability.

Greensill, a supply chain finance specialist, collapsed in February after an Australian insurer refused to renew guarantees underpinning billions of dollars of loans it had made to customers.

Those loans, for which Greensill collected a fee from the borrower, were then bundled up and sold on to other investors.

The precarious arrangement was described as a “Ponzi scheme” by MPs on Thursday, as they grilled Treasury officials as they opened their inquiry into the Greensill lobbying scandal.

On 16 March 2020, after introductions by Cameron, Lex Greensill sent Cunliffe a letter asking for government backing.

Greensill pitched the idea to the Bank of England as an opportunity to get money directly to small business borrowers. With a government-backed fund to support it, Greensill would also be free to issue more loans.

“In current markets, investors are unsettled and seeking redemptions. It is critical to stabilise the supply chain finance investor base at a matter of urgency,” Greensill said in the letter addressed to Cunliffe.

“In our judgment, the initial size of the facility needs to be in the order of £10-20bn if it is to provide the necessary level of confidence to the capital markets that will ensure effectiveness in this extraordinary time,” Greensill added.

A briefing note produced by the Bank makes it clear that Greensill was facing financial pressure, due to market turmoil, when the government guarantee was requested. The notes detail a call on 17 March 2020 between Bank officials, Greensill and Cameron.

Greensill and Cameron were ultimately directed to the Treasury, which had final authority over the scheme. But Cameron continued to lobby the Bank of England for a change in rules. The former Conservative leader, who held stock options in the business, and was a paid adviser, emailed Cunliffe again on 3 April, saying he had numerous conversations with the Treasury but “failed to get anywhere”.

Cameron wanted a change in the CCFF mandate, that would allow the Bank of England to buy bonds linked to supply chain finance. The former prime minister appears to have become exasperated by the refusal of officials to change policies to accommodate Greensill.

“Why are we potentially cutting off a market that already pumps cheap credit directly into SMEs [small- and medium-sized enterprises]?” he said in an email to Cunliffe. “I think I must be missing something here. Am obviously talking to HMT [Her Majesty’s Treasury], but would be grateful for any light you could shed on this … All good wishes. Dc.”

He followed up three weeks later, saying the failure to push through changes to the CCFF – in a way that would mirror a similar scheme in 2008 – were “incredibly frustrating”.

While Greensill was ultimately rebuffed in its efforts to access the CCFF, it was later accredited to offer government-backed loans through the second-largest government-backed loans scheme in June 2020.

The shadow chancellor, Anneliese Dodds, said: “We need to follow the money. Greensill was carrying the begging bowl from the Bank of England to the Treasury and back.

“The chancellor can’t keep ducking this. He must come out of hiding and explain his role in the return of Conservative sleaze,” she said.

A spokesperson for David Cameron said: “Greensill were not asking for a government loan or direct support in any way. The Treasury letter rejecting the proposals in June makes clear that Greensill reported that market conditions were improving. So the idea that Greensill was in difficulty at that stage is nonsense.”

Key extracts from emails between David Cameron, the Bank of England and Greensill
Britain’s deputy governor of the Bank of England, Jon Cunliffe.


5 March 2020: email from David Cameron to the Bank of England deputy governor, Jon Cunliffe


“I do a lot of work with Greensill Capital, now the world leaders in this space. We would be keen to help … Do you have a moment for a quick word? I am on my old number or can call you whenever convenient. All good wishes. Dc.”

5 March 2020: email from David Cameron to James Benford, private secretary to the governor


“The purpose of this email is to introduce you to Lex Greensill, founder and CEO of Greensill Capital (GC)... I am an adviser to the company. We would be keen to step and help during the current difficulties. Perhaps a first stage would be for Lex and/or some of his team to meet with some of your experts to discuss how the market works and the role of GC within it.”

3 April 2020: email from David Cameron to the Bank of England deputy governor, Jon Cunliffe


“Jon, Am writing to ask for your help. Greensill – who I work with – have had numerous conversations with HMT but have failed to get anywhere.

The request is simple – please include in the CCFF the ability to purchase bonds issued in respect of supply chain finance. These allow us to pump billions into SMEs, (including every pharmacy that works with the NHS).”

“Why are we potentially cutting off a market that already pumps cheap credit directly into SMEs? I think I must be missing something here. Am obviously talking to HMT, but would be grateful for any light you could shed on this …”

22 April 2020: email from David Cameron to the Bank of England deputy governor Jon Cunliffe


“Apologies for bothering you about this again. We (Greensill) have had lots of conversations with HMT and while every question seems to have been answered, we haven’t yet got to the green light”

“It is incredibly frustrating because (as you know) trade finance paper was included in a similar scheme in 2008/9 and it would work again.”

“I don’t want to put you to the trouble of a long email chain when ultimately this is an HMT call (and we continue to talk to them at every level) but could I ask you to do a one to one call with Lex Greensill so that he can brief you on where we have got to. This comes with all good wishes.”

Newsletter

Related Articles

London Daily
0:00
0:00
Close
Unelected PM of the UK holds an emergency meeting because a candidate got voted in… which he says is a threat to democracy…
You Are So Beautiful
Rob Schneider explains California reparations legislation.
Postmodern Jukebox European Tour Version
Who knew badminton could get so intense?
An old French tune (by Georges Brassens) Pomplamoose ft. John Schroeder
Farmers break through police barriers in Brussels.
Sattahip Motor Show 20
London's Iconic British Telecom Tower Sold To Become Hotel
SONATE AU CLAIR DE LUNE - Moonlight sonata
Ukraine Arrests Father-Son Duo In Lockbit Cybercrime Bust
A kiss to build a dream on
US Offers $15 Million For Info On Leaders Of Cybercrime Group Lockbit
Wonderful Tonight - Eric Clapton (Boyce Avenue acoustic cover)
Russia Claims UK Cultural Agency Spied for Ukraine
Mean Blues
Apple warns against drying iPhones with rice
La Chansonnette
Alexei Navalny: UK sanctions Russian prison chiefs after activist's death
Pattaya Addicts
German economy is in 'troubled waters' - ministry
Franz Liszt - Liebestraum - Love Dream
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
Dream a little dream of me
New video
Unchained Melody sung like you've NEVER heard!
Tucker Carlson says Boris Johnson wants "a million dollars, in Bitcoin or cash, from Tucker Carlson to talk about Ukraine.
Dave Brubeck - Take Five
Russia is rebuilding capacity to destabilize European countries, new UK report warns
Édith Piaf - Non, Je Ne Regrette Rien (Sofie)
EU Commission wants anti-drone defenses at Brussels HQ
Rondo Alla Turca
Von der Leyen’s 2nd-term pitch: More military might, less climate talk
Kiss of fire
Global Law Enforcement Dismantles Lockbit Ransomware Operation
Tom Jones - I´ll Never Fall In Love Again 1967, 1989, 2001
Prince William Urges End to Gaza Conflict
Israel Cachao López - Guajira Clásica
UK court to hear Assange's final appeal against extradition to the US, where he faces charges related to his journalistic work—the publication of a classified video in 2010 that exposed US war crimes against humanity.
Edward Maya - Stereo Love (feat. Vika Jigulina) (Extended Mix)
About 50-60% kids either chose to be YouTuber or influencer
Strauss - Radetzky March - Karajan
A viral video of Nationals MP Barnaby Joyce lying on a Canberra footpath is celebrated by his media mates.
La vie en rose
European Countries React to Navalny's Death by Summoning Russian Diplomats
The Temptations - My Girl (Smokey Robinson Tribute) 2006 Kennedy Cent
Israel has gone ‘beyond self-defence’ in Gaza, says Labour’s Streeting
Orlando Cachaito Lopez Redencion
English farmers to be offered ‘largest ever’ grant scheme amid food security concerns
Edith Piaf - NON, JE NE REGRETTE RIEN
Cameron government knew Post Office ditched Horizon IT investigation
RADETZKY MARCH-2008-Wien, New Year Concert
EU Calls for Immediate Ceasefire in Gaza Conflict
Only you (And you alone)
EU Vows To Hold Putin "Accountable" After Meeting Alexei Navalny's Wife
Strangers In The Night
EU Launches Probe Into TikTok Over Child Protection Under Digital Content Law
Charles Aznavour - La Boheme
The EU Initiates Naval Mission to Defend Red Sea Trade Routes
Summer time
EU and UK Announce Joint Effort on Migration
Sting and Stevie Wonder - Fragile (from Sting's 60th birthday concert)
Brazil's Lula Likens Gaza Operation to Holocaust, Israel Says "Red Line" Crossed
Aux Champs Elysees
Ministers Confirm Proposal to Prohibit Mobile Phone Usage in English Schools
Stand By Me - Ben E. King (Boyce Avenue acoustic cover)
Microsoft-backed OpenAI valued at $80bn after company completes deal
La Mer (Beyond the Sea) – Avalon Jazz Band
‘Alexei would want to tell Russia not to give up fighting’
She
Rwandan Footballer's Dismissal Sparks Concerns Over UK Asylum Plan
Nathalie Song by Enzo Petrachi Stjepan Hauser Cello
Whisky Challenges China's Baijiu Market During New Year Celebrations
Shape of My Heart - Sting (Boyce Avenue acoustic cover)
Avdiivka - Symbol Of Ukrainian Resistance Now In Control Of Russian Troops
Radiohead - Creep
Putin Critic Alexei Navalny's "Killers" Refusing To Hand Over Body, Say Allies
Quizás,Quizás,Quizás - Andrea Bocelli - Jennifer Lopez
"Historic Step": Zelensky Signs Security Pact With Germany
Perhaps, Perhaps, Perhaps - Multi-Couples
"Historic Step": Zelensky Signs Security Pact With Germany
Pentatonix Havana
20 Tech Giants Sign Effort To Fight AI Election Interference Across Globe
Paula Cole - Autumn Leaves
Joe Biden Accuses Putin of Causing Navalny's Death
Oscar Benton Bensonhurst Blues
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
OH NANANA vs ABUSADAMENTE
Tucker Carlson grocery shopping in Russia. This is so interesting.
Nina Simone - ”I Put A Spell On You”. Vezi aici cum cântă Jeremy Ragsd
Julian Assange's Wife Warns of His Death if Extradited to US
NIGHTWISH - The Phantom Of The Opera
‘A lot higher than we expected’: Russian arms production worries Europe’s war planners
Motorshow 2016 Tanjay Negros Oriental
Greece Legalizes Same-Sex Marriage and Adoption Rights
Monica Bellucci - Ti Amo
Hungarian Foreign Minister: Europeans will lose Europe, the Union's policy must change drastically
Michael Jackson - Billie Jean Milena The Voice France 2018
In Britain Homeowners are receiving CPO’s (Compulsory Purchase Orders) so their homes can be redistributed to migrants
Michael Buble (Help Me Make It Through The Night) feat Loren Allred
Memories Canon In D - Maroon 5 (Boyce Avenue piano acoustic cover)
Matteo Simoni - Marina
Maroon 5 - One More Night
Maroon 5 - Memories
Mark Knopfler - Brothers In Arms (Berlin 2007 Live)
Mark Knopfler & Emmylou Harris - Romeo And Juliet (Real Live Roadrunni
Marina, Marina - The LUCKY DUCKIES intimist live concert at Guimarães
Major Lazer & DJ Snake – Lean On Mauranne The Voice France 2016
Love Theme from Romeo and Juliet - Joslin - Henri Mancini, Nino Rota
LoLa & Hauser - Love Story
Linkin Park Jay-Z - Numb Encore (Live 8 2005)
Hallelujah Mennel Ibtissem, The Voice France Leonard Cohen
Leonard Cohen - Dance Me to the End of Love
Leonard Cohen & Natasha Rostova - Dance me to the end of love
La casa de papel - Bella Ciao
La Camisa Negra
L'italiano (Toto Cutugno) - The Gypsy Queens
Juanes - La Camisa Negra
Jonathan and Charlotte - Britain's Got Talent 2012 Live Semi Final - U
John Powell - Assassin's Tango
Joe Cocker - You Can Leave Your Hat On (LIVE in Dortmund)
Joe Cocker - Unchain My Heart 2002 Live
Joe Cocker - A Whiter Shade Of Pale
Jay Z & Alicia Keys - Empire State of Mind LIVE
Jason Mraz - Im Yours (live)
Jarrod Radnich - Bohemian Rhapsody - Virtuosic Piano Solo
James Blunt - You're Beautiful
James Blunt - You're Beautiful & Bonfire Heart (Live at The Nobel Peac)
If You Go Away - Helen Merrill & Stan Getz (Tribute to Virna Lisi)
I'LL BE MISSING YOU
I Say a Little Prayer
Hotel California ( Eagles ) 1994 Live
Historia de un amor - Luz Casal. Vezi interpretarea Biancăi Sumanariu
Here Comes The Sun - The Beatles (Boyce Avenue acoustic cover) on Spot
Heart - Stairway to Heaven Led Zeppelin - Kennedy Center Honors
HAVANA by Camila Cabello Zumba Pre Cooldown TML Crew Kramer Pastra
HAUSER and Señorita - I Will Always Love You
HAUSER - Waka Waka
HAUSER - Sway
HAUSER - Lambada
HAUSER - Historia de un Amor
HAUSER - Despacito
Great Pretender
Georgia May Foote & Giovanni Pernice Samba to 'Volare' - Strictly Come
Gary Moore - Still Got The Blues
GIPSY KINGS VOLARE Penelope Cruz
Fugees - Killing Me Softly With His Song
French Latino - Historia de un Amor
For A Few Dollars More The Danish National Symphony Orchestra (Live)
Flashdance • What a Feeling • Irene Cara
Filip Rudan - “Someone You Loved” Audicija 4 The Voice Hrvatska Sez
Eric Clapton - Wonderful Tonight
Enya - Only Time
Enrique Iglesias - Bailando (English Version) ft. Sean Paul
Enrique Iglesias - Bailamos
Elena Yerevan Historia de un amor
Ed Sheeran - Shape of You (Official Music Video)
Ed Sheeran - Perfect Symphony [with Andrea Bocelli]
Ed Sheeran - Perfect (Official Music Video)
Easy On Me - Adele (Boyce Avenue 90’s style piano acoustic cover) on S
ERA - Ameno
ELENA YEREVAN- Cancion Del Mariachi-IN STUDIO-2017 DPR
Dust In The Wind - Kansas (Boyce Avenue acoustic cover)
Don't Let Me Be Misunderstood
Despacito x Shape Of You - Pentatonix
Deep Purple - Child In Time - Live (1970)
David Foster When A Man Loves A WomanIt's A Mans World (SealMichael Bo
Dance me to the end of Love ( Pi-Air Design )
Coolio - Gangsta's Paradise (feat. L.V.) [Official Music Video]
Conquest Of Paradise (Vangelis), played on Böhm Emporio organ
Cielito Lindo
Chico & The Gypsies - Bamboleo
Canción Del Mariachi - Antonio Banderas, Los Lobos • Desperado
Camila Cabello - Havana (Audio) ft. Young Thug
Camila Cabello - Havana ( cover by J.Fla )
California Dreamin' - The Mamas & The Papas José Feliciano (Boyce Ave
Buster Benton - Money Is The Name of The Game
Hallelujah Pentatonix
Bobby McFerrin - Don't Worry Be Happy (Official Music Video)
Bob Dylan - Knockin' On Heaven's Door Emilia The Voice Kids France
Besame Mucho - Cesaria Evora
Ben E. King - Stand by Me Sax Cover Alexandra Ilieva Thomann
Bella Ciao
Bella Ciao - INSTRUMENTAL
Beautiful in White x Canon in D (Piano Cover by Riyandi Kusuma)
Bad Romance - Vintage 1920's Gatsby Style Lady Gaga Cover ft. Ariana Savalas & Sarah Reich(1)
BELLA CIAO 2020 - KARAOKE ITALIANO
BAMBOLEO - Gipsy Kings • Antonio Banderas, Katya Virshilas
BAILANDO (original)
Awesome Ukrainian yodeler - SOFIA SHKIDCHENKO (with English subtitles)
Avicii - The Nights
Atom - The Great Gig in the Sky
Aretha Franklin - (You Make Me Feel Like) A Natural Woman (Official Ly
Antonio Banderas - Cancion del Mariachi (Desperado)
André Rieu - Zorba's Dance (Sirtaki)
André Rieu - Can't Help Falling In Love
André Rieu & Mirusia - Ave Maria
Andrew Reyes Elton John - Don't Let The Sun Go Down The Voice 2020 (
Andreas Kümmert Whiter Shade Of Pale The Voice of Germany 2013 Showd
And I Love You So
All About That Bass - Postmodern Jukebox European Tour Version
Alan Walker - Faded (Piano Cover)
Ain't No Sunshine -- Bill Withers (cover by Canen 12 y.o.)
African music
Adriana Vidović - “Creep” Audicija 4 The Voice Hrvatska Sezona 3
Adriana Vidović - “Believer” Nokaut 3 The Voice Hrvatska Sezona 3
A Fistful of Dollars - The Danish National Symphony Orchestra and Tuva
4 Beautiful Soundtracks Relaxing Piano [10min]
2CELLOS - Whole Lotta Love vs. Beethoven 5th Symphony [OFFICIAL VIDEO]
2CELLOS - Smooth Criminal (Live at Suntory Hall, Tokyo)
2CELLOS - Smells Like Teen Spirit [Live at Sydney Opera House]
2CELLOS - Despacito [OFFICIAL VIDEO]
13 Year Old Girl Playing Il Silenzio (The Silence) - André Rieu
094.All About That Bass
00 - SADNESS PART 1
(Ghost) Riders In the Sky (American Outlaws Live at Nassau Coliseum, 1
(Everything I Do) I Do It For You - Bryan Adams (Boyce Avenue ft. Conn
What a wonderful world
Moon river
×