One man had got $1 billion. One bank had a bill of £28 billions. One day saw an extraordinay event in historic banking finance. From my blog : http://chaup.blogspot.co.uk/2012/02/so-soros-who-are-you-and-what-happened.html Part 1 So Soros, who are you and what happened Someone could be written on special most-wanted notification (dead or alive) for the so-called name: The man who broke the Bank of England. However, the name was given admired to George Soros after he made a quick but extraordinary fat profit, which was approximate £1 billion from exploiting the British Government’s monetary policy. WHO IS GEORGE SOROS? Mr George Soros was born in August 12th, 1930. His early life saw violent wartime during 1940s and he found himself immigrating to England in 1947. After graduating at London School of Economics, he left England for American Dream with a luggage stuffed with 9 – year working experience and a great influence from his lecturer, philosopher Karl Popper. A hard life perhaps makes man stronger, and the successful financer seems to be not an exception. WHAT WAS HAPPENING AT THAT TIME? After suffering from variable exchange rate so many years, European countries achieved a consensus about introducing European Exchange Rate Mechanism (ERM) in March 1979. Isolated by sea but close economics to the rest European friends, lonely England’s currency - sterling quickly felt into its friends’ arms by entering ERM in October 1990, but did not know that the gloom of economics had been waiting for it. The contract although allowed sterling to be stable in comparison with the rest, it constrained the currency from fluctuating more than 6% among other member currencies. As its integrity, British monetary policy obeyed strictly the rule even though it was suffering from so many difficulties. While British inflation level was nearly three times higher than Germany, the exchange rate was DEM 2.95/£ indicating that the sterling was overvalued. But it was not the end of Ho Chi Minh trail, as Germany added difficulty to British policy-makers by its high interest rate. Exogenously, foreign speculators had been exploiting the sensitive trouble of the European family. In the end, whatever difficulties the British Conservative Government had to face, it did not matter anymore, and Prime Minister John Major put a full-stop for the relationship with ERM in 1992.