Monday 5 August 2019 / 9:10 AM John McDonnell

Shadow Chancellor John McDonnell asks Prime Minister to Investigate Chancellor Sajid Javid’s Role in Financial Misconduct

Today Labour’s Shadow Chancellor John McDonnell has written to Prime Minister Boris Johnson asking him to investigate Chancellor Sajid Javid’s role in financial misconduct. The Shadow Chancellor has urged the Prime Minister to look immediately into Mr Javid’s relationship to the trading of risky collateralised debt obligations (CDOs) while at Deutsche Bank and Mr Javid’s involvement in the ‘Dark Blue’ tax avoidance scheme.

Commenting on the need for “public confidence in the suitability and unquestionable integrity of the holders of high public office”, the Shadow Chancellor has said that the Prime Minister ought to reconsider the fitness of Mr Javid to serve as Chancellor of the Exchequer. McDonnell has expressed concern about three pieces of evidence relating to the new Chancellor of the Exchequer’s 18-year career in finance.

First, McDonnell points to the US Senate Permanent Subcommittee on Investigations’ damning conclusions about Deutsche Bank’s activities in the run-up to the global financial crisis, while Mr Javid worked at the Bank.

Second, McDonnell highlights comments associating Mr Javid with collateralised debt obligations, described by Warren Buffett as “financial weapons of mass destruction”. Third, McDonnell notes with alarm Deutsche Bank’s use of the ‘Dark Blue’ scheme, found to constitute tax avoidance by the UK Supreme Court, and refers to reports of Mr Javid’s involvement in the scheme. The Prime Minister must respond, as a matter of urgency, to these serious and worrying charges.