Mortgage giant HBOS has dismissed reports that it was facing funding problems as “complete utter nonsense” as it saw its shares fall by over 7 per cent today.
On why it has seen its shares fall, a spokesman for the lender says that it was down to market conditions which has seen share prices go up and down on a daily basis.
He adds: “We have exceptionally strong capital resources. HBOS is one of the strongest financial institutions so there is absolutely no foundation whatsoever in these rumours.”
It is not the only lender that has seen rumours circulating that it has had to go to the Bank of England for an emergency loan. Alliance & Leicester saw its shares fall by as much as 31 per cent on Monday but saw its shares rebound the following day.