That’s in pence.
STOP! 98. 97, 96, 98…
Down 38 per cent just before the close in London. The stock is sitting at a circa 50 per cent discount to the supposed government-backed, competition-rule-book-busting paper terms on offer from Lloyds TSB. And that’s after shares in Lloyds itself fell more than 6 per cent.
A selling frenzy was underway in the UK banking sector on Tuesday – all caused by the UK government’s implicit agreement to inject fresh capital.
The UK authorities have made an elementary financial error here: they have shown the market what the planned to do. And the market has moved against them. Aggressively.
What a surprise.
What a mess.
Who’s resigning?
UPDATE 16.46 BST:
HBOS closing level – 93p, off 66.8p or 42 per cent
RBS closing level – 90p, down 58.1p or 39 per cent