George Osborne did his best to seem concerned about the collapse of Carillion yesterday – but one of his many employers has made huge sums of money from the company’s demise.

The front page of the Evening Standard (pictured above) lamented the cost to the taxpayer of the firm’s collapse. And in his editorial, Osborne wrote:

“This matters for 20,000 anxious UK employees. It causes problems for government which, under all parties, used it to build railways, manage schools and maintain prisons.

“It raises concern about ongoing public services. And taxpayers will now have to pay — the issue is how much.”

That sounds very earnest. But the US wealth management firm which he advises has made millions from the company’s collapse.

Last March, when Osborne was still in Parliament, he revealed he was working one day a week for the Blackrock Investment Institute:

The entry also notes that he expects to receive equity in the company.

Now it has emerged that Blackrock is among financial speculators and hedge funds who bet that Carillion’s share price would fall after the company issued profit warnings last year.

The Financial News website reported:

“BlackRock, the world’s largest fund manager, is among a group of investors to have won from the collapse of Carillion, the UK construction company that went into liquidation this morning.”

The payout to Blackrock and others who backed a fall in Carillion’s share price was £80 million, according to an estimate from IHS Markit reported in the Guardian.

The article ads that “much more [is] likely to have been banked” by the firms since the initial slump.

Osborne can’t claim to champion the public interest while working for a firm benefiting from taxpayer’s losses…

  1. Yes but they didn’t make the profit out of Carillion. They made it by gambling that share prices would fall so sold shares they didn’t have and then bought them as the price plummeted . So it’s gambling shareholders who lose out.

  2. Gambling that share prices might fall !!!….you mean making sure share prices fell ?….thats not gambling its FRAUD!!!!!

  3. Mrs Eileen Milligan says:

    I smell a rat here the Corporate corrupt and the Tory corrupt doing what they do best steal from the poorest in the country and blatantly cover it up as they do with their corrupt legal team these dispicable Tory fraudsters should be sent to prison !!!!! Any other country they would be taken to task they should be taken out ASAP

  4. Jonathan James says:

    Don’t understand the point the article is trying to make. Even if he was the one specifically speculating on Carillion, it just makes him a good business person. It’s not him who physically mismanaged the company.

  5. Mrs June mcdaid says:

    This is the Torrie’s at there best out to make a packet out of this company who would pay that wage if there was not something underhand hear, yes the government know this was going to happen and the the public would be the ones to suffer there gread and think that’s ok as it’s going in there pockets and taken from the poor to cover a cover up when is the public going to stand up to this government even after the short money going to hospitals and other thing we the poor public get poorer they get richer and having a good smirk about it’s time for them to go, who’s up for another election,me for one.

  6. How can George Osborne be objective as an MP when the money he makes from his privileged knowledge dwarfs his MP’s salary. This stinks of the deep-rooted corruption that is threatening our while democracy. There was a time in my lifetime that this would have been a scandal that brought down a government but now it seems to be the norm. We need a socialist government if ministers who work FULL-TIME for the country and have no vested interests. Only then will the needs of the electorate have priority over the greed if capitalists.

Leave a comment

Your email address will not be published.

1000

Comments are limited to 1000 characters.