- Jul 10, 2003
- 27,767
https://www.dailymail.co.uk/news/article-8188349/Jacob-Rees-Moggs-firm-accused-profiteering-coronavirus-economic-crisis.html
And for those who would rather not click the link
Jacob Rees-Mogg's firm is accused of profiteering from coronavirus as it boasts of 'once in a generation' chance to cash in on investments
Jacob Rees-Mogg's firm is accused of profiteering from the coronavirus crisis
Somerset Capital Management is advising clients to seize 'once in a generation' chance to reap in 'super normal returns' as stock markets fall
Investments include hospitals in Brazil and pharmacies in South Africa
It comes as Western economists have warned that Britain's lockdown is causing an economic downturn potentially more severe than the Great Recession
Jacob Rees-Mogg's investment firm is accused of exploiting worldwide market volatility caused by the coronavirus panic to rake in huge profits. The MP owns 15 percent of Somerset Capital Management, whose chiefs appear to be investing in businesses hit hard by falling stocks. Executives have told clients the international crisis is providing a 'once in a generation' chance of earning 'super normal returns', the Sunday Mirror says. SCM managers are swallowing up businesses expected to 'bounce back' if the world economy recovers. There are potential gains of 500 percent.
Investments include private hospitals in Brazil, pharmacies in South Africa, and a Chinese firm behind a device which checks if people are wearing masks. Mark Asquith, an SCM boss, wrote to investors: 'History has shown us that super normal returns can be made during this type of environment.
'Market dislocations of this magnitude happen rarely, perhaps once or twice in a generation, and have historically provided excellent entry points for investors.' It comes as 708 people who tested positive for the coronavirus died yesterday, while the total UK death toll increased to 4,313 in a big 24-hour jump. Meanwhile, top Western economists have warned that Britain's lockdown is causing an economic crisis unseen by most alive today.
The International Monetary Fund said the economic downturn could be more severe than that experienced during the 2008 Great Recession. A former Bank of England official has also warned that UK unemployment levels could surpass those of the Great Depression in the 1930s.
As millions of jobs and at least 800,000 businesses are feared to be destroyed within weeks, Labour politicians are accusing Mr Rees-Mogg of profiteering. Labour leader Sir Keir Starmer said: 'Nobody should be seeking to take advantage of this crisis. We should all be asking ourselves what we can do for our country and each other.' Shadow Chancellor John McDonnell called the move 'sick', adding: 'Profit seeking from suffering is nearly as low as you can get. When we come through this we need a tax on profiteers.'
Father-of-six Mr Rees-Mogg stood down as a director of SCM to become Leader of the House of Commons. He is reportedly worth £100million. Owning at least 15 percent of SCM explains how he was entitled to a reported £1million share of last year's nearly £20million profits. SCM was founded in 2007. Mr Rees-Mogg's office had declined to comment. Oliver Crawley, a partner at SCM, said: 'The human cost of the virus is devastating and we take it very seriously, but our job as investment managers is to remain rational during periods of extreme volatility, in order to carefully invest our clients' savings and pensions for their long-term security.'
And for those who would rather not click the link
Jacob Rees-Mogg's firm is accused of profiteering from coronavirus as it boasts of 'once in a generation' chance to cash in on investments
Jacob Rees-Mogg's firm is accused of profiteering from the coronavirus crisis
Somerset Capital Management is advising clients to seize 'once in a generation' chance to reap in 'super normal returns' as stock markets fall
Investments include hospitals in Brazil and pharmacies in South Africa
It comes as Western economists have warned that Britain's lockdown is causing an economic downturn potentially more severe than the Great Recession
Jacob Rees-Mogg's investment firm is accused of exploiting worldwide market volatility caused by the coronavirus panic to rake in huge profits. The MP owns 15 percent of Somerset Capital Management, whose chiefs appear to be investing in businesses hit hard by falling stocks. Executives have told clients the international crisis is providing a 'once in a generation' chance of earning 'super normal returns', the Sunday Mirror says. SCM managers are swallowing up businesses expected to 'bounce back' if the world economy recovers. There are potential gains of 500 percent.
Investments include private hospitals in Brazil, pharmacies in South Africa, and a Chinese firm behind a device which checks if people are wearing masks. Mark Asquith, an SCM boss, wrote to investors: 'History has shown us that super normal returns can be made during this type of environment.
'Market dislocations of this magnitude happen rarely, perhaps once or twice in a generation, and have historically provided excellent entry points for investors.' It comes as 708 people who tested positive for the coronavirus died yesterday, while the total UK death toll increased to 4,313 in a big 24-hour jump. Meanwhile, top Western economists have warned that Britain's lockdown is causing an economic crisis unseen by most alive today.
The International Monetary Fund said the economic downturn could be more severe than that experienced during the 2008 Great Recession. A former Bank of England official has also warned that UK unemployment levels could surpass those of the Great Depression in the 1930s.
As millions of jobs and at least 800,000 businesses are feared to be destroyed within weeks, Labour politicians are accusing Mr Rees-Mogg of profiteering. Labour leader Sir Keir Starmer said: 'Nobody should be seeking to take advantage of this crisis. We should all be asking ourselves what we can do for our country and each other.' Shadow Chancellor John McDonnell called the move 'sick', adding: 'Profit seeking from suffering is nearly as low as you can get. When we come through this we need a tax on profiteers.'
Father-of-six Mr Rees-Mogg stood down as a director of SCM to become Leader of the House of Commons. He is reportedly worth £100million. Owning at least 15 percent of SCM explains how he was entitled to a reported £1million share of last year's nearly £20million profits. SCM was founded in 2007. Mr Rees-Mogg's office had declined to comment. Oliver Crawley, a partner at SCM, said: 'The human cost of the virus is devastating and we take it very seriously, but our job as investment managers is to remain rational during periods of extreme volatility, in order to carefully invest our clients' savings and pensions for their long-term security.'
