NEWS: Brunswick aims to mend Morgan Grenfell image

Deutsche Morgan Grenfell, the scandal-hit investment bank, has drafted in City PR specialist Brunswick to help restore its battered reputation.

Deutsche Morgan Grenfell, the scandal-hit investment bank, has drafted

in City PR specialist Brunswick to help restore its battered reputation.



The agency was hired this week on a project basis as the crisis over

Morgan Grenfell’s fund management activities intensified.



Last week the company froze pounds 1.4 billion invested in its unit

trusts following the discovery of potential irregularities in

investments made on behalf of three of its European funds.



Peter Young, the fund manager in charge of two of those unit trusts, was

suspended from his pounds 150,000-a-year job pending an investigation by

Imro, the investment management watchdog. A second fund manager, Stewart

Armer, has also been suspended.



Although trading in all three funds has now resumed, Morgan Grenfell is

anxious to smooth over the crisis with disgruntled investors, the City

and the regulatory authorities.



Head of corporate affairs James Murray confirmed that Brunswick had been

hired to advise on communications strategy in the light of the current

crisis. ‘They will help us assess what the reputational implications are

and on the best way forward,’ he said.



He added that Brunswick had been selected because of its strong

reputation in the marketplace.



Brunswick has assembled a strong team to manage the assignment,

including senior partners Alan Parker and David Brewerton. Although

Murray declined to outline Brunswick’s brief, it is likely to include

measures to counteract any embarrassing claims by Peter Young.



‘Young will not go down without a fight and will probably seek to spread

the blame across the organisation and the City generally,’ said one

observer.



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