A spokesman con-firmed
Network Rail lost the best part of £1 billion of public cash trading on complex investment products which backfired last year, reported Marco Giannangeli of the Sunday Express.
[Network Rail lost £1bn by gambling, Marco Giannangeli, Sunday Express, 6 Sep 2015]
[…] According to its latest set of accounts, Network Rail lost £982 million trading in derivatives pegged to foreign currencies for the period 2014/15.
The derivatives were supposed to act as an insurance policy against future currency fluctuations and interest rate rises, though ultimately the gambit failed.
But Network Rail’s own independent auditors claimed that the sum could not be “hedged” and must be classified as trading activity, which means it should be considered a loss.
[…] A DfT spokesperson con-firmed that all “unusual spending” would now have to be cleared by the Treasury, adding: “This Government is committed to prudent financial management and that is why tough measures are in place for using derivatives.”
How many miles of track in the North of England could have been electrified for £982 million?