Recent HBOS situation has prompted regulator to move against insider trading, but industry doubtful over how much impact FSA can actually have
Two weeks ago, rumours swept across the City that HBOS could be the next mortgage lender to follow in the footsteps of Northern Rock, sending the bank's share price into freefall. This forced the authorities to take a more heavy handed approach to so-called trash and cash insider trading. HBOS's shares plummeted almost 20% in the space of an hour as rumours of a liquidity crisis continued to swirl. The bank claimed the gossip was completely unfounded, and in a gesture of confidence, senior management used their annual bonuses to buy 1.4m shares in the company, worth a combined £6m. ...
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