1st Sep 2014 10:06
LONDON (Alliance News) - A high-profile fund manager has sold his entire stake in HSBC Holdings PLC over concerns banks are facing "unquantifiable" fines from regulators, the Daily Telegraph reports Monday.
Neil Woodford, the former Invesco Perpetual fund manager who launched his Woodford Equity Income fund in June this year, said the bank remains a "conservatively managed, well-capitalised business" but said he had sold his shares due to a particular risk, namely "fine inflation" in the banking industry, the paper said.
Woodford said the size of the fines being imposed on banks appears to be dictated by the company's "ability to pay" rather than the seriousness of their misconduct.
Woodford famously stopped investing in banks before the financial crisis and his purchase of shares in the bank in May last year marked his first return to the sector since 2002, the Telegraph said.
http://www.telegraph.co.uk/finance/personalfinance/investing/shares/11067373/Neil-Woodford-sells-out-of-HSBC-fearing-fine-inflation.html
By Sam Unsted; [email protected]; @SamUAtAlliance
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