Early day motion tabled by primary sponsor Lord Campbell-Savours (Labour), on Monday, 14 January 1991, in the House of Commons. It is signed by 2 members in total.

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ERM ENTRY (NO.1)

That this House notes allegations made concerning the trading activities of Gerard and National in the 24 hours immediately preceding the announcement at 4 p.m. on 5th October 1990 of Britain's entry into the European exchange rate mechanism; notes that Gerard and National during this 24 hour period are alleged to have speculated to the tune of 35 million in ?? sterling-dollar foreign exchange transactions thereby gaining from the rise in ?? sterling that followed upon entry into the exchange rate mechanism, whereas their normal trading size in such investments would be between ??2 and 5 million; notes that Gerard and National are alleged to have invested a further ??1000 million in the gilts market during the same period thereby enabling them to take advantage of interest rate movements; further notes that Gerard and National are alleged to have increased their exposure on their ?? sterling forward rate agreement book by an additional ??1000 million so as to gain by speculation in further interest rate reductions; notes that the majority of the foreign exchange positions taken prior to the announcement of exchange rate mechanism entry and a base rate cut were liquidated on the Friday afternoon after 4 p.m. and on the following Monday; and asks Gerard and National to make a public statement confirming or denying these allegations.

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Secondary information

Type

Early day motion

Reference

287 

Session

1990-91

Subjects

Currency speculation Investment Financial markets Sterling Exchange rates Exchange rate mechanism Gerard and National

Link

View this Early day motion on www.parliament.uk