£15m profit for Davies in sale of bank shares

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The Independent Online

Gavyn Davies, the Labour-supporting City commentator, has pocketed nearly £15m before tax from selling a small part of his stake in Goldman Sachs, the US bank where he is chief economist.

Gavyn Davies, the Labour-supporting City commentator, has pocketed nearly £15m before tax from selling a small part of his stake in Goldman Sachs, the US bank where he is chief economist.

A former Labour Party fund-raiser, Mr Davies led an inquiry into future funding of the BBC that reported last year. He was once tipped to be the next Governor of the Bank of England.

Mr Davies, and the other 200 partners at Goldman Sachs, was given a huge share allocation when the bank floated on the New York Stock Exchange in May last year. The sale of shares this week by former partners and two financial institutions that invested in the bank, raised a total of $4bn (£2.7bn.) Some 40 million shares were sold on Tuesday at $99.75 a share - the shares have almost doubled from the flotation price of $53.

At the time of the flotation, the partners committed themselves not to sell any shares until 2002. This year, however, that rule was relaxed and former partners were allowed to sell up to 15 per cent of their holding at this week's shares sale.

Mr Davies offloaded 219,572 shares on Tuesday, leaving him with shares worth more than £80m. Former partners and other employees still own more than 60 per cent of the bank.

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