Owners of Halifax, Britain’s biggest mortgage lender, HBOS were the victims of malicious rumours in the City this morning, that saw a collapse in the company’s share prices and the FTSE index.
Shares in HBOS, dropped almost 20% at one stage, forcing the Bank of England to make an unprecedented denial that the bank was in crisis.
Rumours that the Bank of England had been called in to crisis talks with HBOS had swept round the City early in the day.
Britain’s financial watchdog have launched an investigation tonight.
There are concerns that the rumours had been started by “short-sellers” who make money by betting on shares that fall in value.
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