HBOS shares dropped 25 percent in Lehman Brother crisis

As analysts forecast that today will go down as “Black Monday” in the financial annals, the UK shares continued to tumble as Lehman Brothers became the next casualty of the credit crunch, Lehman one of the world’s largest investment bank announced they were going to file for Chapter 11 bankruptcy, as this happened HBOS one of Britain’s largest mortgage lender was hit hard, being one of the worse mortgage companies effected.

HBOS, the UK’s largest mortgage lender and owner of Halifax shares fell 25 percent today, but recovered this afternoon slightly, Barclays, Friends Provident and Royal Bank of Scotland shares also fell hard today.

The Bank of England pumped an extra £5 billion into the money markets to try and ease the anxieties, but the share values still fell. It was also reported that undisclosed funds were available to financial institutions from the European Central Bank.

Read full article at the Independent