Top investors boost bank exposure as LIBOR crisis spreads

Leading fund managers including Richard Buxton at Schroders have been increasing their exposure to major UK banks following the LIBOR scandal which has rocked the sector.

As the crisis grows and encompasses more banking giants – last week it emerged both HSBC and Lloyds could be on the hook for over $1bn each because of their roles in manipulating LIBOR – managers said they have been using the sell-off to buy banks. Buxton, manager of Schroders’ £2.7bn UK Alpha Plus fund, said he bought more Barclays shares the day chief executive Bob Diamond resigned as it was a “catalyst for change”. “Yes, there is the risk of class actions but I think proving what took place was of material disadvantage to the people bringing the class actions will be difficult, and...