OMGI's Johnson: Eurozone periphery faces 'long living death'

Banks in the eurozone periphery face years of misery trying to shift bad debt, according to Old Mutual Global Investors'(OMGI) Christine Johnson.

The manager of the £484m Corporate Bond fund (pictured) said in contrast to the UK and US, eurozone countries had failed to rein in the worst excesses seen in 2008. "Spanish banks are looking most like the financial version of Lindsey Lohan," she said. "The intentions seem to be good, if frequently having to be enforced by the courts, but under the surface there are still a host of unresolved issues. "With unemployment hitting 27% in Spain and bad loans on a steady upward climb, the chances of another round of recapitalisation are rising. Superficially, Spain and Ireland's property...