SAVERS with banks in Eurozone trouble spots are being urged to withdraw their funds by a Yorkshire-based wealth management company.
Leeds-based Pearson Jones, which advises more than 2,000 private clients and 500 businesses, is temporarily suspending all banks in Portugal, Italy, Greece and Spain from its bank deposit recommendations. Pearson Jones, which also has offices in York, Sheffield, Bishop Auckland and Reading, said it was changing its investment advice after the recent bail-out of the Republic of Ireland.
Pearson Jones deputy managing director, Peter Heckingbottom, said: "Although Ireland has now agreed its bail-out, the impact could be dramatic for Eurozone countries if this contagion spreads. It is estimated that, if Spain does eventually need a bail-out, it could be E750bn – almost 10 times the support package for Ireland."
He added: "In the circumstances, our prudent approach to managing client money has led to our recommendation that savers withdraw their funds where appropriate."
Pearson Jones said that if the contagion were to spread it would also affect the equity markets.
Mr Heckingbottom added: "This is a risk which equity investors have to accept. However, if the contagion does not spread, the potential upside for European equities could result in good returns for investors. There are lots of strong European companies making good profits and retaining healthy sums of cash on their balance sheets."