Sinking BEE deals 'will plunge banks too'

November 6, 2008

Cape Town - Black economic empowerment (BEE) deals that were under water because of underperforming stock markets were going to affect the balance sheets of all local banks, Johan De Kock, the head of equity research at Metropolitan Asset Management (Metam), said yesterday.

De Kock told Business Report that because the stock markets had been battered recently, deals that were linked to share price performance would scare BEE partners away, leaving banks with stock that had lost half its value.

Read More