The Stench of the City

David De Jonge Weill

Something very fishy happened in the City yesterday. The stock of GCM Resources on the AIM market jumped a massive 40% in one day on the “intelligence” that it was about to acquire a licence to commence mining operations in Bangladesh. Simultaneously, Mr David Weill resigned as a non-executive director.

Long term readers will remember Weill as an old friend of this blog. He is an associate of hired killers Tony Buckingham and Tim Spicer. Weill sent me this letter:

I believe that you are simply dragging up these old allegations to create interest and controversy to sell books – which is of course your business.

You should be aware however of the nature of the tort of defamation, specifically libel. Your lawyers can help you with this if you can’t get your head around it.

You have made derogatory comments in print that have been published about a good friend of mine, Tony Buckingham, that would by their very nature bring Tony into a negative light by any reasonable member of the public.

Your comments are wholly false. Tony is the CEO of a FTSE 250 company, a man of integrity, and a supporter of western democracy. You should expect to be contacted by attorneys in due course.

You may think that you know better than the FSA and numerous other regulators and agencies. In my opinion however, you are just a sack of crap.

David Weill

Weill was set up by Lord Eothschild to manage a $1.2 billion fund subscribed by rich investors which made a spectacular loss of $600 million. This from the Independent of 30 January 1994 (pre web archive, sorry):

LORD ROTHSCHILD, one of Britain’s most eminent investors, is about to sever his connections with a Buddhist American investment manager whose $1.2bn hedge funds have embarrassed him by halving in value this year.

The funds, which are being wound down, are managed by David de Jongh Weill from Spencer House, a mansion overlooking St James’s Park that used to belong to the family of the Princess of Wales. Mr Weill’s office is rented from one of Lord Rothschild’s companies.

But Mr Weill’s rich clients have been disappointed this year by a fall of more than $600m in the value of the highly speculative funds, which bet heavily on a fall in interest rates that did not happen.

Given Mr Weill’s (ahem) colourful past and associates, it seems to me that the simultaneous occurrence of an instant leap in GCM Resources share values of many millions of pounds and his resignation from the board, is a matter that would warrant investigation if it did not occur in the mafia state which is Britain 2012.

It seems to me there are three obvious explanations:

a) Complete coincidence, Weill happened to resign the day the share price exploded

b) Weill’s resignation led to an instant leap in the value of the company

c) The old mining share scam of ramp, grab and run

Now I have no idea what actually happened. Further digging would be welcome. The truth is that the City of London is a vast pit of stench, and I just happen occasionally to glance at one of the oozing creatures within because it called me a “sack of crap”.

Interesting though, isn’t it? I see Bell Pottinger is also involved with GCM Resources. I certainly shan’t be investing.