British Labour leader Corbyn tells Morgan Stanley: 'We're a threat'

British Labour leader Corbyn tells Morgan Stanley: 'We're a threat'
From Reuters - December 1, 2017

LONDON (Reuters) - Britains opposition Labour leader Jeremy Corbyn warned Morgan Stanley that bankers are right to regard him as a threat because he wants to transform what he cast as a rigged economy that profits speculators at the expense of ordinary people.

Morgan Stanley cautioned investors on Nov. 26 that political uncertainty in Britain was a bigger threat than Brexit given the risk of Corbyn winning power and then dismantling what was once seen as one of the worlds most stable free-market economies.

Bankers like Morgan Stanley should not run our country but they think they do, Corbyn, a 68-year-old socialist, said in a video posted on Twitter that showed the towers of the City of London and Canary Wharf financial districts.

So when they say were a threat, theyre right: Were a threat to a damaging and failed system that is rigged for the few, he said.

Morgan Stanley declined to comment.

London, which vies with New York for the title of the worlds financial capital, dominates the $5.1-trillion-a-day global foreign exchange market and is home to more banks than any other financial center.

But many bankers, CEOs and investors were spooked by the shock 2016 vote for Brexit and have been dismayed by the political turmoil which followed, including Prime Minister Theresa Mays botched gamble on a snap election in June.

May lost her party its majority in parliament in that election while Corbyns unexpectedly strong result in the vote has convinced many of Labours opponents that Corbyn is a potential prime minister if Mays government falls.


Kept in power with the support of a small Northern Irish political party, May has just over a year to negotiate Britains divorce from the EU that will shape Britains prosperity and global influence for generations to come.

Now many investors fear Corbyn, who was once dismissed by his own party as an out-of-touch peace campaigner with no hope of ever winning power, could win the top job if the political turmoil continues in London.

One senior executive at a top U.S. investment bank said that at a meeting in New York recently concerns over Corbyn trumped concerns about Brexit.

Their top concern was not whats happening in Germany and Spain, or North Korea and Trump: their main concern was whats happening in the UK and what Corbyn might mean for the country, the executive, who spoke on condition of anonymity said.

Its like Cuba without the sun, the executive said.


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