The largest floating exchange monetary heist was led by George Soros’ right-hand man, Stanley Druckenmiller. He had the idea of a speculative attack on the pound sterling in 1992. Like its Italian counterpart, the English currency appeared overvalued and vulnerable. It was pegged to the Deutsche Mark, then the strongest of European currencies, at an exchange rate that was less and less credible and realistic.
Inflation was high in Germany because of reunification and the massive injections of capital it required. The Bundesbank (Buba), the German central bank, did not want to hear about an interest rate cut demanded by the English who were in recession. They wanted support from their partner to promote economic recovery in the rest of Europe. These dissensions between Helmut Schlesinger, the boss of Buba and Norman Lamont, the British Minister of Finance, were to be discovered and exploited.