23 January 2009

Jamie Matheson, Executive Chairman Brewin Dolphin said:

“Encouraging saving and equity ownership have been twin objectives of successive Governments over the last 30 years.  Investing in the major UK banks was considered a prudent investment by hundreds of thousands of private investors who invested for the long term and their retirement, not short term profit.   The sector also provided over a quarter of the dividend income from the FTSE100 in recent times.  Over the last year, these responsible investors have seen their income and capital decimated through factors they could not have foreseen.  In 1997 regulation was reformed, but the new structure was not equipped for the toxic debt that threatens the system today, as recognised by Adair Turner last night.  As part of a strategy to stabilise the banking sector, the authorities should accept their responsibility to help underpin the value of bank equity and avoid further value dilution of these loyal savers. We are encouraged by Lord Myners’ statement that the Government does not wish to nationalise the British banking industry; Lloyds shareholders were prevailed upon to enter into a merger and rescue of HBOS and it would be utterly iniquitous to deprive them of their investment now.”

 Enquiries:

Brewin Dolphin
Charlotte Black, Director Group Corporate Affairs
Tel: 07860 247 333

Hudson Sandler
Wendy Baker / Andrew Hayes
Tel: 020 7796 4133