Don't bet on the bank
The failure of a major investment bank. The bailout of the US mortgage agencies. The rumoured demise of further financial institutions. Now does not seem like the ideal time to be investing in the financials sector. Or does it? Laurence Neville reports
A year on from the beginning of the credit crisis, the financial sector has taken a pounding. Over $400 billion has been written down by the world's leading banks following the collapse of the US subprime market and much of the structured credit market. The fallout has included the demise of two of the US's best-known independent investment banks - Lehman Brothers and Bear Stearns - and the near collapse of mortgage agencies Freddie Mac and Fannie Mae. It has required multiple capital injections
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