Tuesday, September 16, 2008

HBOS share price plunges

What is going on at HBOS? Earlier, the share price crashed 40 percent. It has since recovered, but the last time I looked, it was still down 25 percent.

The cost of insuring its debt against default has also jumped on fears of higher funding costs. The five-year credit default swaps were 387.5 basis points. That is one very expensive insurance policy.

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