The financial world remembers September 16, 1992 as the day when Britain exited the European Exchange Rate Mechanism (ERM). Amid a huge wave of speculation against the pound sterling, the name of the Hungarian-born investor, George Soros, emerged as the most famous figure.
Black Wednesday?
Through the Quantum Fund, Soros took a sell position againstPound sterling—not sell euros in the form of pounds, because the euro has not been launched in 1992. Various reports say the position is worth around US$10 billion and generates a profit of around US$1 billion. Broad market pressures eventually led the UK government to suspend its membership in the ERM.
The event gave rise to the popular nickname “the man who broke the Bank of England”, but Black Wednesday was not a one-man operation: policy decisions, British economic conditions, the ERM MECHANISM, and the activities of many market participants contributed to the end result.
From investor to philanthropist
Soros began his philanthropic activities in 1979 by supporting scholarships for black South African students during the apartheid era. The network that later developed into the Open Society Foundations (OSF) works on issues of human rights, justice, education, freedom of expression, transparency, and accountable governance.
According to OSF, Soros has given more than US$32 billion to the foundation network. In Central and Eastern Europe, its activities include support for civil society and access to information during and after the communist era.
Praise, criticism, and political influence
For his supporters, Soros' experience as a Jewish survivor of the Nazi occupation of Hungary explains his commitment to open society and the protection of vulnerable groups. For its critics, OSF funding to advocacy organizations and civil society is a form of private political influence that should be monitored.
Criticism of donor power and transparency is a legitimate part of the public interest. But such criticism needs to be distinguished from accusations that Soros secretly controls any political or economic turmoil of the world. Such “puppet master” claims should not be treated as facts without specific and verified evidence; some narratives about Soros have also been mixed with antisemitic stereotypes.
Questions worth researching
The main question is not whether Soros is entirely an “angel” or a “devil”. A more useful question is: which organizations receive funding, how much is it worth, for what programs, how is its governance and reporting, and what impact can it prove?
WhoRunsIt will continue this search by separating facts, analysis, criticism, and allegations—and linking each material claim to a verifiable source.
Resources and advanced reading
- Bank of England-UK monetary regimes and macroeconomic stylised facts
- Open Society Foundations — Who We Are
- Open Society Foundations — George Soros