Economics
South African Banks Drop Most in 14 Years as Zuma Fires Nene
- FirstRand falls 15% as Barclays unit, Standard Bank tumble
- President Zuma hands little-known lawmaker finance role
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South Africa’s banking index plummeted by the most since October 2001, wiping out $8.6 billion in share value, after President Jacob Zuma fired Finance Minister Nhlanhla Nene and replaced him with a little-known lawmaker.
The industry benchmark fell 14 percent by the close in Johannesburg. FirstRand Ltd., Africa’s largest bank by market value, fell by 15 percent, the most on record, while Standard Bank Group Ltd., the biggest by assets, dropped 14 percent. Barclays Plc’s South African unit slumped 15 percent and Nedbank Group Ltd. retreated 11 percent.