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Speculators could make millions by betting against the pound if there’s no deal

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Speculators could stand to make millions by betting against the pound if Britain crashes out the EU without a deal, Britain’s top banker has said.

The warning about fat cat profiteering came as outgoing Governor of the Bank of England Mark Carney said that the public can have “total confidence” that their savings and insurance will be safe even if Britain crashes of the EU with no-deal.

He was trying to allay consumer fears as he was quizzed by MPs on the Treasury committee. MPs questioned Mr Carney and members of the Bank’s Financial Policy Committee on the potential for investors and hedge funds to make money out of betting against the fall in the value of the pound in a no-deal Brexit .

He said: “The will be some financial institutions, there may be some individuals connected with those financial institutions, who have correctly predicted – or got lucky on – which direction sterling ends up going and they will potentially make a lot of money.

“But it won’t cascade into the core of the system and it won’t impact on the real economy.

“The Canadian finance chief has long infuriated Conservative MPs by offering frank advice on the risks leaving the EU poses to the British economy – but tried to strike a reassuring tone ahead of what experts warn could be a time of instability for the UK economy, regardless of how we leave the EU.

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Labour MP Alison McGovern asked if it was a “legitimate concern” that some wealthy people stand to profit out of a no-deal Brexit.

“In a no-deal, some people will become wealthier, but they will be outnumbered by the number who will become poorer,” Mr Carney replied.

Mr Carney, who is leaving his role in January next year, also assured MPs that the hunt for his successor was underway and would be handled smoothly.