Short-selling firms linked to MPs' pensions
MPs' pensions invested by short-selling firms
Unlock Democracy is the joint campaign of Charter 88 and the New Politics Network promoting democratic renewal and active engagement in the political process.
|  |
Wednesday, 01, Oct 2008 12:00
Hedge funds active in financial short-selling were investing MPs' pensions, it was revealed today.
With short-selling being blamed for the downfall of HBOS among other banks around the world through pushing down the share price and decimating confidence in a rocky sector, MPs was among the first to criticise the City.
However, it now appears UK lawmakers' own retirement fund was investing in firms that were short-selling.
Accounts of the pension fund reveal £7 million of the £367 million pension pot was invested in the Quellos fund of hedge funds, reports the Financial Times.
As the banking crisis hit, before the Financial Services Authority (FSA) placed a ban on short-selling on financial stock, politicians from all parties hit out at short-selling.
From chief secretary to the Treasury Yvette Cooper, who described betting on falling shares as "irresponsible" and "destructive" to Lib Dem treasury spokesman Vince Cable, who claim speculators had "brought a major British bank to its knees".
Both the Liberal Democrats and Conservatives have faced taunts of double standards over party donations from firms that have profited from short selling on UK financial institutions.
While Lord Oakeshott, the Liberal Democrat Treasury spokesman, described short-selling hedge funds as pack of wolves, the party received £162,000 from the head of hedge fund Marshall Wace, which was particularly involved in short-selling over HBOS.
Meanwhile, the Conservative party has also received a number of donations from hedge funds, as has Labour.