by Michael Patrick O'Leary
Many detached observers have asked what the point of Brexit is. Who benefits?
Many people have asked the simple question: why is the UK going through the ghastly and costly process of leaving the EU? Remainers are fighting to keep jobs and save businesses, are fearful about their livelihoods. The government’s own research has clearly shown that there will be major disruption to the economy and to the daily lives of ordinary people. Did anyone vote in the referendum to be worse off? Who benefits from this chaos?
The prime minister’s more attractive and brighter sister, Rachel, has some ideas on the subject, “People who have invested billions in shorting the pound or shorting the country in the expectation of a no deal Brexit”. Ex-Chancellor of the Exchequer, Philip Hammond, explored the same theme, alleging that Johnson “is backed by speculators who have bet billions on a hard Brexit – and there is only one outcome that works for them: a crash-out no-deal Brexit that sends the currency tumbling and inflation soaring.” Nick Macpherson, former permanent secretary to the Treasury, said Hammond was right to question the political connections of some of the hedge funds with a financial interest in no deal.
Peter Jukes wrote in Byline Times on 23 September 2019: “according to City insiders, Boris Johnson’s push towards a ‘no deal’ Brexit is a ‘free lunch’ for hedge funds and currency traders.” Sir Jim O’Neill, the former Chairman of Goldman Sachs’ Asset Management, said “A lot of them are saying thank goodness for Boris, he’s giving us a chance to make some money”.
Byline Times determined how many donations to Johnson’s Conservative Party leadership campaign came from hedge funds, City traders or wealthy investors. This revealed that, between 24 May and 23 July 2019, £357,500 of the £552,500 came from such donors. They made up 65% of the value of the donations, and 30 out of 40 (75%) of the number of donors. “Boris Johnson remains heavily reliant on one of the few sectors – hedge funds, foreign exchange and derivative trading – which could actually profit from a sudden decline in share prices or the fall of sterling.”
Molly Scott Cato is a current Member of the European Parliament. She writes: “Lives may be lost and our economy destroyed, but for many of the key Brexit players a No Deal scenario and the chaos this would cause is simply an opportunity to maximise their returns.” Jacob Rees-Mogg was a thorn in the flesh of Theresa May with his clique of radicals within the Conservative Party, the ERG (Economic Research Group). Although he was strongly in favour of Brexit, he was canny enough to move his own hedge fund to Dublin to retain the advantages of being in the EU. He is no longer a rebel, but is in the government as Leader of the House of Commons. His Somerset Capital Management was managed via subsidiaries in tax havens like the Cayman Islands and Singapore. Many of those who strongly support Brexit have reason to fear new EU regulations on tax havens. The EU recently tripled its list of tax havens to include fifteen countries.
Crispin Odey was a major contributor to the Leave campaign. He told the BBC on the morning of the referendum result that he had made £220m speculating that the markets would fall, saying “‘Il mattino ha l’oro in bocca’ – the morning has gold in its mouth”. He has now bet £300m against British businesses, so that he will profit when they collapse as a result of No Deal Brexit. Odey Asset Management – friend to Boris Johnson– has been actively shorting UK high street retail chains. High street retailers are doing badly because of online shopping. Odey is shorting their shares wholesale, which only makes matters worse.
Richard Tice co-founded the Leave campaign with Arron Banks, whose finances in relation to the Leave campaign are far from transparent. Tice is the chairman of the Brexit Party, a Eurosceptic political party which participated in the 2019 European parliamentary election. Tice has listed his property business offshore on a stock exchange in Guernsey. In 2019, Tice was elected as a Brexit Party Member of the European Parliament for the East of England. Molly Scott Cato writes that Tice describes his economic activity as “expertise in ‘distressed debt’. Others would call this vulture capitalism, and sharks like Tice are circling as the Brexit they have campaigned for destroys genuine businesses and makes their assets available for snapping up at low prices.” Tice is the lover of Isabel Oakeshott whose book on David Cameron included an allegation that Cameron, during his university days, performed a sex act involving a dead pig. The unsubstantiated story was dependent on hearsay and Oakeshott subsequently conceded her source could have been “deranged”.
Five candidates for the Brexit Party were businessmen and millionaires with links to tax havens. Nigel Farage admitted setting up a tax haven trust fund on the Isle of Man for “inheritance purposes”. Yorkshire candidate John Longworth advised the Hottinger Group, which is owned by an offshore firm named in the Panama Papers. South West candidate James Glancy is chief executive and part-owner of a security consultancy whose largest shareholder is based offshore on the Isle of Man. South East candidate Chris Ellis was chairman for a diamond mine business operating through a company in the British Virgin Islands and named in the Paradise Papers. London candidate Graham Shore is co-owner of Shore Capital Group which says it will “take advantage of Brexit uncertainty” and whose ultimate parent company is based in Guernsey. Among the City hedge fund operators backing Boris Johnson are David Lilley of RK Capital, Jon Wood of SRM Global, and Johan Christofferson of Christofferson, Robb and Co. These patriotic Brexiteers are seeking financial gain from undermining their country and its institutions.
Some people have rubbished claims of dirty dealings and told us we do not understand how hedge funds work. That may be true because they are specifically designed for us not to understand. Hedge funds are risk-takers. They invest in risky stocks or projects, in the hope of making above-average returns. George Kerevan writes: “Brexit is not a cry for help from the English underclass. It is a carefully stage-managed campaign by global finance capital in the form of the hedge funds. It is being orchestrated out of hedge fund self-interest and the greed of billionaires. Boris Johnson is their front man.”
Guto Bebb, a former Conservative minister ejected from the party for opposing a no-deal Brexit, said: “The dubious financiers who supported the ‘leave’ campaign and the prime minister’s leadership campaign are betting against Britain. The PM should put the interests of the country first rather than facilitating a financial bonanza for a few.”