Lord Oakeshott, Lib Dem Treasury spokesman, was horrified by the idea that Tory donors might have short-sold stocks, HBOS in particular (see my previous blog).

But what of Paul Marshall, co-founder of hedge fund Marshall Wace, who has given the Lib Dems about £162,000 in recent years? Guido alludes today to the fact that Marshall Wace likes to short stocks.

What he doesn’t mention is that three separate funds run by the hedge fund were among those who disclosed short positions in HBOS after the FSA four-month ban on financial short-selling was brought in .

Oakeshott (pictured left) had described hedge funds which shorted HBOS as “wolves”. How come the discrepancy?

A Lib Dem spokesman says that the party has chastised short-selling despite having taken the Marshall donation. The Tories, by contrast, have refrained from any criticism. Not sure this explanation really washes.

And then there is Michael Brown, the controversial character who gave the Lib Dems £2.4m. Brown loved speculating in the City, although it is not clear if he went short as well as long.

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