HBOS Senior Managers Buy Shares


HBOS said on Sunday that senior management, including Executive Director Peter Cummings, bought more shares in Britain's biggest mortgage lender, days after it dismissed rumours its balance sheet was in trouble.

Executive directors, non-executive directors and senior managers at HBOS bought some 1.4 million shares last Thursday at 446 pence per share using their bonus entitlements, the company said in a statement.

The filings indicate a show of belief in the company's business and come days after shares in the owner of the Halifax brand took a pummelling amid talk that higher interbank lending rates would hurt its ability to access funding.

The rumours led Britain's financial authorities to make a rare public move to calm jittery markets, saying they were not aware of problems at any UK bank and would investigate share price moves sparked by rumours.

HBOS, whose shares bore the brunt of the impact of the rumours, dismissed the speculation, saying it had an "exceptionally strong balance sheet" and continued to access wholesale funding.

HBOS shares closed up 6 percent at 473.75 pence per share on Thursday, ahead of the long Easter holiday weekend.