Scott backs banks despite Northern Rock plight

The manager of the F&C UK Growth & Income fund, in which Scott holds HBOS, Barclays and Lloyds, says the bank’s struggle was exacerbated by “panic selling” and stresses savers must understand Northern Rock operates a different funding structure to many other mortgage lenders and banks. Scott says there could be a possible contagion effect to the wider economy, particularly in light of recent troubles in the housing market, but says a recession remains “unlikely”. “[The] move by the Chancellor to guarantee the deposits of Northern Rock customers has bought overnight stability to the bank...