City Of London
Truss Mini Budget Caused LDI Pension Fund Crisis, Say L&G Bosses
- Asset managers never modeled for this level of political chaos
- Leverage in funds was not major cause of the collapse: L&G
Liz Truss gives a news conference on the UK economy in Downing Street in October.
Photographer: Carlos Jasso/BloombergThis article is for subscribers only.
The downwards spiral in pension funds and intervention by the Bank of England to prop up UK government debt was caused by Liz Truss’s Mini Budget, Legal & General Plc’s chief executive officer and chairman said.
Nigel Wilson and John Kingman told lawmakers Tuesday that L&G had never stress tested for a situation similar to the rapid fall in the price of gilts that happened after former Chancellor of the Exchequer Kwasi Kwarteng’s statement on September 23.