FSA and Bank of England step in to stop HBOS plunge
Shares in UK mortgage giant HBOS dived from 480p to 400p within the first 30 minutes of trading this morning amidst rumours the bank was seeking Bank of England funding. The day before, after some of the worst trading in living memory, HBOS’ share price had dropped 12%.
A spokesperson for the Big Five bank blamed “ill-founded and malicious rumours” for the tanking of HBOS shares.
“These rumours have no substance whatsoever,” he added.