Lex Greensill told MPs on the Commons Treasury Committee that he accepted “complete responsibility” for Greensill’s demise but said that the ultimate reason his company failed was because Tokio Marine and other insurers withdrew cover.
MPs on Tuesday grilled Mr Greensill over the firm’s collapse, which has thrown David Cameron’s lobbying work for the firm under the spotlight. The company provided supply-chain finance, which ensures that suppliers get paid more quickly by their customers than normal.
Greensill paid suppliers and then collected the money from the customer later.
Conservative MP Felicity Buchan told Mr Greensill his business model was “simply unsecured lending … dressed up as receivables”.
But Mr Greensill responded that the company only ever provided funding that was secured…