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2008 crisis, 2008 depression, 2008 Financial Crisis, ABN Amro, activist campaign, American rail freight operator CSX, bailout, banking scandals, Boris Johnson, City of London, corporate raiding, CSX, East Africa, finance, hedge funds, India, Infosys, Prime Minister, RBS, RBS bailout, Rishi Sunak, Royal Bank of Scotland, Sir Christopher Hohn, Sir Fred Goodwin, Snehal Amin, Tax evasion, TCI, TCI hedge fund, TCI partner, The Children’s Investment (TCI) fund, UK, Wall Street crash
Rishi Sunak, son-in-law of InfoSys founder, reportedly set in motion a chain of events leading to the 2008 financial crisis, when he was a hedge fund boss/corporate raider. He also appears to have set in motion the chain of events that have forced Boris Johnson to resign, in an apparent attempt to make himself Prime Minister. Indeed, Sunak likely orchestrated the other resignations. Did he pay people off with all of his blood money?
No matter how bad things appear, they can always get worse. Whatever you may think of Boris Johnson, Sunak is clearly worse.
He seems to have used the corporate raider strategy against Boris Johnson: “Sunak was a partner of The Children’s Investment (TCI) fund when it threatened to “go to war” with the board of the American rail freight operator CSX, where the tactics included pledging to topple the company’s board after the hedge fund had surprised directors by amassing a secret interest” https://www.theguardian.com/politics/2020/mar/08/rishi-sunak-took-part-in-controversial-us-corporate-raid-case
Now he undermined Boris Johnson in an apparent attempt to make himself British Prime Minister. Say your prayers that someone better than Boris becomes British PM, not someone who is clearly worse, like Rishi Sunak: “Rishi Sunak and Sajid Javid RESIGN in Cabinet coup to topple Boris Johnson: Boris Johnson’s leadership is hanging by a thread tonight as Health Secretary Sajid Javid and Chancellor Rishi Sunak dramatically resigned in an explosive Cabinet walkout” By Lizzy Buchan, Deputy Online Political Editor, 5 Jul 2022 https://www.mirror.co.uk/news/politics/breaking-sajid-javid-resigns-over-27406232 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1088364/Letter_to_the_PM.pdf
Rishi Sunak’s parents moved to the UK from India via East Africa. His wife, an Infosys heiress, is claiming non-domiciled status to avoid British taxes on Infosys earnings.
“New chancellor Rishi Sunak cashed in on fund that helped break banks
By Peter Evans Sunday February 16 2020, 12.01am GMT, The Sunday Times
Rishi Sunak was part of a small team of hedge fund bosses who shared nearly £100m after an audacious stock market bet that lit the touchpaper on the 2008 financial crisis.
The new chancellor was a partner at the hedge fund TCI when it launched an activist campaign against the Dutch bank ABN Amro in 2007, resulting in its sale to the Royal Bank of Scotland (RBS).
The deal loaded RBS, at the time led by Sir Fred Goodwin, who was stripped of his knighthood in 2012, with crippling debt and led to a £45.5bn government bailout.
Sunak’s time at TCI between 2006 and 2009 made him a multimillionaire in his mid-twenties and, according to fund managers who worked with him at the time…“ https://www.thetimes.co.uk/article/new-chancellor-rishi-sunak-cashed-in-on-fund-that-helped-break-banks-rb7zgfqkz
“Chancellor Rishi Sunak – A history of egregious banking scandals and tax evasion 23rd February 2020 / NewsBits https://truepublica.org.uk/newsbits/chancellor-rishi-sunak-a-history-of-egregious-banking-scandals-and-tax-evasion/
“London Diary: Rishi Sunak dogged by accusations that he benefited from the 2008 financial crash: Sunak was a partner at hedge fund TCI when it launched a campaign against Dutch bank ABN Amro forcing its sale to Royal Bank of Scotland (RBS) triggering a chain of events leading to the 2008 crash” By Hasan Suroor Published: 01 Mar 2020, 3:00 PM https://www.nationalheraldindia.com/opinion/london-diary-3
“Rishi Sunak took part in controversial US corporate raid case
New chancellor was part of team at aggressive hedge fund involved in US court case over a raid on rail freight firm By Simon Goodley, The Guardian
Sun 8 Mar 2020 15.46 GMT
The new chancellor, Rishi Sunak, was part of a small team of hedge fund managers criticised by a US court for covertly acquiring an interest in a Wall Street-listed firm while working on a 2007 corporate raiding deal.
Sunak was a partner of The Children’s Investment (TCI) fund when it threatened to “go to war” with the board of the American rail freight operator CSX, where the tactics included pledging to topple the company’s board after the hedge fund had surprised directors by amassing a secret interest.
The hedge fund is one of the City’s best-known “activist” investors, meaning it often tries to use its financial muscle to force firms to change their management or strategy.
TCI’s acquisition of its CSX stake, which included shares and financial derivatives that give economic returns similar to shares, was ruled by a US judge to have breached US securities rules, although TCI the successfully appealed against the judgment. https://dealbook.nytimes.com/2011/07/19/anticlimax-in-long-running-csx-court-case/
In the original judgment, the judge said the financiers had attempted to “seek to defend their secret accumulation of interests in CSX by invoking what they assert is the letter of the law. Much of their position in CSX was in the form of … a type of derivative that gave defendants substantially all of the indicia of stock ownership save the formal legal right to vote the shares. In consequence, they argue, they did not beneficially own the shares.”
The appeal court also sent part of the case back to the lower court so it could further consider whether the investment in the derivatives had breached any law, but CSX then abandoned its claim.
The moves to use the CSX stake to replace the directors were documented in minutes taken to record a meeting in June 2007 between advisors to CSX and TCI, which was attended by Sunak, TCI founder Sir Christopher Hohn, and TCI partner Snehal Amin.
The document, sent by the advisors to CSX, stated: “TCI indicated that they fully intend to ‘go to war’. When asked what that means they indicated that they would seek to replace the entire board as a means to change management.”
A Treasury spokeswoman said: “TCI had highlighted failures in corporate governance, safety and performance at CSX and were ultimately successful in convincing shareholders to vote for their board nominees rather than the management’s nominees.”
Following the campaign, CSX shares declined, prompting TCI to sell its stake and take its directors off the board.
TCI did not respond to invitations to comment.”
Courtesy of Guardian News & Media Ltd. The Guardian allows up to 500 words for personal blogs. See the article here: https://www.theguardian.com/politics/2020/mar/08/rishi-sunak-took-part-in-controversial-us-corporate-raid-case http://syndication.theguardian.com/open-licence-terms/
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