'gloomy' goldman sachs blasted by andrew neil over brexit forecasts

Mr Neil, who hosts the Daily Politics show on BBC Two, took to Twitter to slam the giant, one of the major investment banks involved in the derivatives scandal which brought about the 2018

financial crisis. The indomitable scot wrote: “A year ago Goldman Sachs forecast sterling would fall from $1.25 to $1.14 in 2017.  “In fact, it rose to $1.35. Goldman also forecast 10-year

gilt yields (cost of government borrowing) would rise from 1.28 per cent to 1.65 per cent. They fell to 1.19% by end-Dec." Mr Neil added that nearly every major public and private

forecaster underestimated UK growth and job creation for 2018 including the IMF (1.1 per cent), Barclays (0.7 per cent), Goldman (1.4 per cent), NIESR (1.4 per cent), OBR (1.4 per cent),

OECD (1.2 per cent) and government-backed RBS. He added: “I’ve been arguing in speeches/lectures for some time that decent, synchronised growth in every major market in 2018 plus more

competitive £ means official and consensus growth forecasts likely to be too gloomy. Tho beating 2% will still be a stretch!”  Despite most major investment banks remaining cautious and

watchful over the changes and challenges the City of London, Goldman Sachs’ CEO Lloyd Blankfein has been outspoken. Mr Blankfein has in the past claim after Brexit he will be, “spending a

lot more time in Frankfurt”, referring to the so-called exodus of global banks from the City of London. Despite Goldman’s role in the 2008 financial crisis, in which a number of banks were

bailed-out by the taxpayer leading to huge public mistrust of the finance world, CEO Blankfein has also attempted to influence Britain’s Brexit policy. In an effort to dismiss the referendum

vote result and push for a second vote, Mr Blankfein Tweeted in November: “Here in UK, lots of hand-wringing from CEOs over #Brexit. Better sense of the tough and risky road ahead. 

“Reluctant to say, but many wish for a confirming vote on a decision so monumental and irreversible. So much at stake, why not make sure consensus still there?” However, there remains a

strong sense among industry analysts City of London firms should be judged by what they do, rather than what they say. Goldman Sachs’ new European headquarters offices are in Farringdon,

while German giant Deutsche Bank recently renewed their lease to keep their headquarters in London. Before the referendum Goldman Sachs famously claimed that a portion of its 5,000 workers

would leave the City but the figure is now predicted to be less than 500. Liam Halligan, a former asset manager who has co-authored the book ‘Clean Brexit’, told Express.co.uk back in

November: "Brexit will make the City even more global-oriented and even more competitive. “It will future proof jobs and further establish the City's global reach.” ALISTAIR

DARLING: THE FINANCIAL CRISIS AND AUSTERITY SPARKED BREXIT Mr Halligan also lashed out at doom-mongering banks now forced to backtrack on their original Brexit predictions because they are

"being proved completely wrong by events", and because their concerned clients are asking them, "what do you mean you're leaving London?" According to Mr Halligan

big banks like Goldman Sachs are caught between using Brexit forecasts to "get the regulations they want, while making sure that their clients realise that they're not actually

going anywhere". Goldman Sachs has continually denied all wrongdoing in connection with the 2008 financial crisis. Goldman has stated that its customers were aware of its bets against

the mortgage-related security products it was selling to them, and that it only used those bets to hedge against losses, and was simply a market maker.