Enron impact on banks is difficult to quantify

Concern about financials came to the forefront last week with the demise of US energy company Enron....

Concern about financials came to the forefront last week with the demise of US energy company Enron. Mike Stubbs, associate director at RSA Investments, says that while the full extent of exposure of UK financials to the failed energy giant is yet to become clear, there was surprise at the level of damage some companies will have to sustain. 'We expected the banks to have some exposure but when Abbey National announced its level of exposure at £95m we were surprised,' he says. He adds that the exact level of exposure may never be fully known. Stuart Fowler, head of UK equities at ...