Tuesday, March 25, 2008
Artemis’ Derek Stuart has warned that more banks could go bust as a result of the credit crunch
Stuart said that following the implosion of Bear Stearns there is a likelihood - and even a need - for more banks to go out of business. ‘Some of these banks need to go bust’ he said. He said fund managers should continue to avoid the banking sector because there is still insufficient transparency about banks' business models. Stuart has been a long-term bear on the banking sector since the launch of his £1 billion UK Special Situations fund. The credit crunch and ongoing liquidity crisis has however crystallised his uncertainties.