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City Wolves, short-selling and the Church of England
September 29, 2008
Some readers may be excited by the fact that Tory donors have sold some equities short during the recent financial crisis. That may seem like a gift to Labour during these perilous times.
But this is a time for cool heads. Bear in mind that the last high-minded group to attack short-sellers - the Church of England - was revealed as hypocritical last week when it emerged that its own investment arm uses similar practices.
Not only does the church lend stocks to short-sellers but…I quote…
“As well as aiding shorting by lending stock, the church commissioners had £13m invested in Man Group, the biggest listed hedge fund manager, at the end of last year. The commissioners also sold a £135m mortgage portfolio last year, says their annual report, despite Dr Williams’ criticism of trading debts for profit.
“Through the Church of England pensions board, which manages another £847m, the church invested this year in a fund from Auriel Capital, a London hedge fund, which aims to make money from currency trading - including short selling currencies.”
Could any of the newspaper groups attacking the Tory hedge funds have any investments (direct or indirect) in the same vein? Or any of the Labour donors? Just a thought.
UPDATE: Jon Aisbitt, non-executive chairman of Man Group (one of the world’s largest hedge fund managers) gave £1m to Labour.
Sounds they’re all up to it, the City has taken over everything, our public life, government, civil service, a bit late to put the genii back into the bottle.
Posted by: dave | September 29th, 2008 at 5:53 pm | Report this commentShort selling? I’m sorry has everybody gone mad? What kind of market can call itself “serious” and unilaterally stop people from transacting at will.
The Stock market has always been a risible den of inequity, and I’m glad that the church had its say. It just adds to the list of hyprocrites who are happy to take all the proceeds but want no moral responsability.
I thought the church promoted moral responsability…but as usual its dry bread for the huddling masses and fois gras for the bishops…good to see that nothing has changed in 800 years.
Posted by: AJGS | October 2nd, 2008 at 11:07 am | Report this comment