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Tory donors profited on Barclays fall
Nicholas cecil and Jim Armitage23.01.09
Partners at a hedge fund which made about £12 million in just days betting on a fall in the Barclays share price have donated more than £300,000 to the Conservatives.
Lansdowne Partners made the profit by selling shares in Barclays last Friday, when the bank lost about a quarter of its value, and buying them back on Wednesday after they fell by almost £1. Its deals, after the ban on short-selling was lifted, are controversial as such actions have been blamed for undermining the banking sector.
Paul Ruddock, co-founder and chief executive of Lansdowne, has donated nearly £260,000 to the Tories over five years, and fellow partner David Craigen has given £50,000, according to Electoral Commission records. The two are reportedly among seven hedge fund members of the Conservative Leaders Group. Senior Labour MP John Spellar said: “Yet again the Tories are up to their knees in cash from people who are shorting the British economy.”
A Lansdowne Partners spokesman said: “The scale of the short position [on Barclays] is absolutely tiny compared to the overall investment the company makes.” The shares had been taken out as insurance against falling markets, he added.
Reader views (5)
David Camoron seems to be getting happier every day that the economy gets worse, so it is hardly surprising that Tory Supporters are sabotaging the economy. Perhaps if Dave gets elected these people will try and help the economy.
- Tony Travers, Ilford England
I disagree this is "dirty" money. Lansdowne have probably analysed the Barclays business model and found it to be unsustainable. The blame for the share price falls can be put fairly and squarely on the Barclays board who have run the Company into the ground and have probably doomed the Company to future Middle Eastern control. I do hope Lansdowne will advice the Tories on economics ... they have far more savvy than Gordon Brown.
- Ab, London
Note - they have previously donated £300,000 to the Tory Party prior to this deal. There is no indication that any proportion of the profit from this deal has or will be going into the Party Coffers.
- Something To Say, Brighton, UK
Is the Labour party still heavily in debt or have they gone bankrupt yet or perhaps Mr Darling bailed them out with one of his infamous loans?
- Bob, Cheam
If the Tories accept this 'dirty money' then it shows how much they have a vested interest in the continuance of the whole corrupt and fraudulant financial system.
- David Moon, Seaford, UK
