Tuesday, 4 May 2010

City Index joins GC-H creditor queue

A fabulous story from the Daily Telegraph today which should act as a warning to anyone thinking of opening a spread betting account.
Geoffrey Conway-Henderson (crazy name, really crazy guy) was one of the first people hired by
Michael Spencer, the founder of interdealer broker ICAP, when he was setting up the business. So one can assume he trousered a few sovs during his career.
Sadly, GC-H seems to have given most of it back to Spencer via
City Index, the spread betting business the Tory treasurer also set up.
This prompts a couple of thoughts. One: these people can't help themselves - if you make a million in the City, go home, stop reading the FT and learn how to cook.
Two: If even City "experts" like Conway-Henderson can lose their shirt (if not all of their names) spread betting really is very risky. Like the ads say, you may lose more than your initial stake...

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