Probe into HBOS share plunge ends

The City’s watchdog formally ended its inquiry today into the false market rumours which hit shares in Halifax Bank of Scotland in March.

The Financial Services Authority (FSA) said it found no evidence that the rumours were spread as part of a “concerted attempt” by individuals to profit by manipulating HBOS’s shares.

The FSA and Bank of England were forced to step in with public statements of reassurance after rumours of a funding crisis sent the bank’s shares tumbling nearly 20% on March 19.