BILLIONAIRE investor George Soros took out a staggering €100MILLION bet that a major German bank would collapse after Britain’s decision to cut ties with the crumbling EU.
The man who “broke the Bank of England” took a short position of 0.51 per cent in Deutsche Bank shares on Friday – the day after the people of Britain backed Brexit.
In growing signs that desperate Angela Merkel’s economy is struggling in the wake of the nation’s decision to leave the EU – Soros Fund Management said its short position was now 0.46 per cent – suggesting it had begun to take profits from the trade.
Since the momentous decision, shares at Deutsche have dramatically slumped.
At one point, shares were down by more than 13 per cent compared with Friday’s high point.
By early on Tuesday afternoon, they were down by 7.9 per cent from that level.
Marshall Wace, a British hedge fund, also took a big bet against Deutsche Bank.
Banks across Europe have been left battered by Britain’s decision to turn its back on Brussels in a historic referendum on June 23, but Deutsche Bank is especially troubled.
The bank, which is undergoing a deep restructuring, has been hamstrung by the fallout from the financial crisis, posting a record loss of €6.8billion in 2015.
Around a year ago, John Cryan took over as the bank’s new CEO, with a clear mandate to slah jobs and costs.
Since then the bank’s share price has dropped by nearly 60 per cent, making it one of the lowest-valued international banks.
It comes after Mr Soros who banked profits of $1bn by famously positioning himself against sterling 22 years ago, said a British exodus from the bloc would make the eventual dissolution of the EU “practically irreversible”.
The veteran investor, 85, said that Brexit was the final nail in the coffin for the EU.
Mr Soros made around £690m after his infamous bet that sterling was overvalued against the Deutsche Mark, which forced former Prime Minister John Major to pull the pound out of the European Exchange Rate Mechanism (ERM).
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