What Lehman Brothers' collapse means for UK Investors - Investments - News - Moneyfacts


What Lehman Brothers' collapse means for UK Investors

What Lehman Brothers' collapse means for UK Investors

Category: Investments

Updated: 31/10/2008
First Published: 16/09/2008

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

What Lehman Brothers' collapse means for UK Investors

Graham Spooner, Investment Adviser at The Share Centre comments on the knock-on effect for the UK banking sector, as US investment bank, Lehman Brothers files for bankruptcy.

"Before we even had time to speculate whether the markets and banking sector were beginning to turn the corner, the financial markets are hit by another financial blow as more than 25,000 Lehman Brothers employees now face unemployment. This certainly isn't going to help investor confidence, the banks continuing reluctance to lend to each other, or applications for that increasingly difficult to secure mortgage.

Earlier today Barclays, Lloyds TSB and Royal Bank of Scotland all saw their share prices drop considerably. So far the biggest loser has been HBOS which has fallen more than 24%.

Investors holding UK banking shares have had a torrid time of late and there's still no sign of any immediate improvement. Those considering buying into the weakness at present should probably remain on the sidelines until the picture is a little clearer. While there are no safe havens in the banking sector at present, more adventurous investors looking to take advantage of the volatile markets and the weakness in the banking sector could do worse than HSBC, which is considered less risky than most due to its international brand".

Related Links:

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Pound plummets as FTSE soars

A second significant fall in the pound has taken place. While this drop may be unhappy news for people who are about to go on holiday, it has given the FTSE 100 quite a boost, as it has passed the 7,000 mark for the second time in as many years.

Would you risk the stock market for £400,000?

It’s becoming increasingly difficult to secure decent returns on cash savings these days, yet we all know that investing in cash is the safest option. But would you risk that level of security for the chance of a £400,000 profit?

Don’t be a victim of investment fraud

Low savings rates have led many of us to desperately scour the market in hopes of finding a deal that will pay more. However, this search means that more and more savers are being tempted by unfamiliar investments.