Goldman backs the EU

A 500 point intra-day drop on the Dow and bear market territory for the FTSE 100 would normally lead today’s letter. But I can’t go past Goldman Sachs backing the “stay” campaign. Sky News reports that Goldman has agreed to give a “substantial six-figure sum” to the “Britain Stronger in Europe” campaign.

You can’t make this stuff up.

You wouldn’t put it past Goldman to back both sides. That would be the prudent trade. Keep all your political allies/vassals happy. Or has it been done out of fear that Brexit will lead to job losses in the City and a less competitive financial sector? Hmm.

Electoral allowances

More was also revealed on how much money will be spent, and by whom, in the lead up to the referendum. Each official campaign can spend ÂŁ7m in the final ten weeks up to the poll, according to the Electoral Commission. But each major political party is allocated a sum of money it can spend.

That sum is determined by how the party fared in the last general election. But what it means in practice is that the Conservatives, Labour, and the Liberal Democrats will all be backing “stay”.

Only Ukip will get money to back “leave”. And though it has a large national following, its poor result in the general election won’t result in a big war chest.

There you have it, Britain. It’s you the people vs Goldman Sachs and the entire British political establishment. You saw Napoleon off and you sent Hitler packing. Good luck with Goldman and Westminster.

Dan Denning's Signature

Category: Brexit

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