23 Jun 2016 By Louise Sassoon
Hedge funds commissioned private surveys to find out how the nation voted so they could profit from placing big bets on the outcome
Bankers have spent billions betting on the result of the EU Referendum
Bankers spent billions of pounds gambling on the EU referendum result after arming themselves with advance information though private exit polls, it has been reported.
Hedge funds commissioned private surveys to find out how the nation voted so they could profit from placing big bets on the outcome before it has been officially announced.
It is claimed they used £100 billion war chest of reserve funds to bet on currencies and other markets, in the hope of making huge financial gains before the stock exchanges open in the morning.
Traders in foreign exchange and interest rate markets where the biggest profits are at stake were reportedly asked to stay over night at major banks including Citigroup, Goldman Sachs and Morgan Stanley.
Traders have armed themselves with advance information through private exit polls
There was no official exit poll – seen as the most accurate of all polls because it asks voters how they have voted rather than how they will vote – because broadcasters did not commissioning one over fears it would not be accurate.
Instead hedge funds and investment banks threw significant amounts of money at commissioning their own intelligence gathering to give them a better picture of the result.
Billionaire George Soros, who famously made millions by betting against the pound before it crashed, warned earlier this week that a Brexit vote could produce a ‘Black Friday’ as markets react in horror to instability caused by the result.