Is your money safe with HBOS?
The last couple of days have seen some heavy selling of HBOS shares with rumours circulating the markets that the group is underfunded and in serious trouble. However, let us take a reality check on the situation, HBOS is a bank which has a good track record, consist of Halifax and Bank of Scotland and recently raised £4 billion from shareholders. The company came out yesterday to quell rumours it was in trouble, something which would not have been allowed if that was not the case. So where do we go from here?
The stock market is currently looking for the next victim of the credit crunch and seems to have HBOS in its sights at the moment. Life may well be tough at HBOS but according to the management the group has access to additional funds as and when required and is not in danger of going under, at the moment.
Things are moving so fast that anything could happen tomorrow but today HBOS is the target, tomorrow is could be the Bradford and Bingley or any other of the financials. Scare stories do not help, they are illegal if traded upon and the government has promised to weed out those circulating rumours in the City and take them before the courts.
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