PRLog (Press Release) -
May 11, 2010 -
“SunWorldwide”
are apparently growing accustomed to warning UK clients to trim their exposure to sterling, sterling-denominated assets and the country’s banking institutions.
The firm’s latest note of caution revolves around the fact that the nation’s partially state-owned banks have a near-£100 billion exposure to the struggling economies of Greece, Spain and Portugal all of which have been the subject of increasing speculation in the bond markets.
“SunWorldwide”
advised clients to sell any holdings in Lloyd’s Banking Group, Royal Bank of Scotland and Barclays reasoning that defaults by any of the countries affected could see the banks forced to write-down billions of pounds and stifle any mild recovery in lending to businesses and individuals in the UK.
http://www.lloydsbankinggroup.com/Analysts at “SunWorldwide”
said that whilst default was improbable, it could not be ruled out especially in light of the growing speculation that if only one country elected to abandon the single currency, markets would panic and possibly cause its collapse which would be tantamount to default.
Barclays’ stock has fallen by almost 20 per cent in the past month whilst Royal Bank of Scotland and HSBC have shed 16 per cent and 13 per cent respectively.
Photo:
http://www.prlog.org/10671900/1
