Goldman Partner Says U.K. Would Be 'Like Cuba Without Sun' Under Corbyn
November 15 2017 - 12:45PM
Dow Jones News
By Simon Clark
AMSTERDAM--A Goldman Sachs Group Inc. partner made a rare
political swipe on Wednesday, calling the weakness of the U.K.
government "scary" and warning it could trigger an election win for
left-wing opposition leader Jeremy Corbyn that would be a
"disaster."
"If we have Corbyn, we have Cuba without the sun," said Bobby
Vedral, a London-based partner at the U.S. investment bank, in a
speech at the Super Investor private-equity conference in
Amsterdam.
Though rare, the comments mark the latest foray by a Goldman
banker into the U.K. political sphere.
Goldman is among a number of international banks preparing
contingency plans for when the U.K. leaves the European Union, and
has said Frankfurt will be its new EU hub for servicing customers
in the region after Brexit.
In October, Goldman Chief Executive Lloyd Blankfein tweeted that
he will "be spending a lot more time" in Frankfurt after enjoying
"great meetings, great weather" in the German City. He added a
hashtag: "#Brexit."
Mr. Vedral said a Corbyn government would be disastrous for the
U.K. and London's finance industry in particular, because Mr.
Corbyn would likely raise taxes on the wealthy, pushing bankers to
relocate to the continent.
He added that the weakness of the Conservative Party--whose
leader, Prime Minister Theresa May, lost her parliamentary majority
in an election earlier this year and two cabinet ministers in
recent weeks--was a greater concern to him than the status of the
U.K.'s talks to leave the EU.
"There is a clear risk in my opinion in the next six months of
Corbyn," he said. "Now that is a problem."
A spokesman for Mr. Corbyn said, "The next Labour government
will transform Britain for the many not the few."
A spokesman for Mrs. May declined to comment.
Morgan Stanley published research this month predicting Mr.
Corbyn would win a general election if one were called this year. A
Corbyn government would result in a "material risk" of capital
flight and higher inflation expectations, according to the
research.
"I fully respect him," Mr. Vedral said of Mr. Corbyn. "I think
the guy has never changed his opinion in his life--and that's the
problem."
Write to Simon Clark at simon.clark@wsj.com
(END) Dow Jones Newswires
November 15, 2017 12:30 ET (17:30 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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