Goldman Sachs warning over Brexit is ‘hysterical’, says MP

GOLDMAN Sachs was accused of ‘hysterical scaremongering’ last night after it warned the pound would collapse in value if Britain votes to leave the EU.

The US bank, which is pouring money into the campaign to keep Britain a member, claimed Brexit could see sterling collapse by 20 per cent overnight, driving the pound to between $1.15 (79p) and $1.20 (82p) , its lowest value since 1985.

Steve Baker, co-chairman of Conservatives for Britain, rejected the claim last night and accused Goldman’s of trying to whip up unfounded fears.

The MP, a Commons Treasury committee member, said: ‘It was exactly this kind of hysterical scaremongering which the Norwegians rejected when they sensibly decided not to join the EU.’

The Goldman Sachs claim was further undermined yesterday by Bank of England Governor Mark Carney. He acknowledged investors were insuring themselves against a possible fall in sterling but said confidence remained strong.

Barclays last week said quitting the EU could turn Britain into a ‘safe haven’ as Europe falls apart.

US bank Goldman Sachs, once dubbed ‘the vampire squid’ for its predatory behaviour, claimed yesterday that a British exit from the EU would lead to a collapse in the pound.

Apart from the fact that prominent economists have said the opposite, why should we believe this scaremongering?

This is the bank that was fined billions for mis-selling toxic mortgage securities and advised on Greece’s disastrous switch from the drachma to the euro. It is also a major donor to the In campaign.

And even if the Goldman claims were true – which the Mail doesn’t believe – with the price of commodities and oil at a historic l ow, a weaker pound could actually be an asset to British exporters.