stelios
22-09-2008, 03:42 AM
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/09/22/cnfsa122.xml
Standard Life call for HBOS insider trading probe
By Rosie Murray-West
Last Updated: 11:48pm BST 21/09/2008
A leading fund management group is believed to have sparked an investigation into insider dealing in HBOS shares immediately before last week's takeover plan.
Standard Life Investments said yesterday that the news that the bank was being bought by rival Lloyds "came out inappropriately".
"It is important that correct procedures are followed in future and we have ensured that this message has been received by those that need to know," a spokesman said.
City watchdogs are expected to investigate huge profits made by speculators in two minutes of trading immediately before the bank's rescue was made public.
Details of the takeover talks between Lloyds and HBOS were announced by BBC business editor Robert Peston on Wednesday morning at 9am, sending shares soaring from their low of 88p to 215p in an hour. The deal was not formally announced until four hours later.
advertisementHowever, in two trades at 8:57am and 8:58pm, two buyers alone acquired more than 20m HBOS shares at 96p. In total, around 160m shares changed hands in the moments before the takeover was announced, making a paper profit of nearly £190m for the traders and leading to suspicion of a leak.
Mr Peston said last night that he had told "almost nobody" about the deal until he broadcast his story for the BBC. "The information was very tightly controlled internally," he said. "As for externally, I'm assuming that these were negotiations at a very high level. We all know the Treasury, the Bank of England and the FSA knew, and so did Gordon Brown.
Other than that, there were a few advisers - but the talks had only been going intensely for a relatively short time. So it wasn't one of those deals where hundreds of people knew about it."
The Financial Services Authority (FSA), which regulates the City, refused to comment yesterday on whether it would investigate circumstances surrounding the HBOS rescue. "We never comment on individual investigations," a spokesman said. "We monitor unusual share movements as a matter of course."
There has also been criticism of the four hour delay between the BBC news report on the takeover talks and the confirmation by HBOS of talks over a rescue deal. An HBOS spokesman said yesterday that the FSA was "comfortable" with the approach the bank took over disclosing the talks."
Lloyds TSB agreed to pay 232p per HBOS share, valuing the company at £12.5billion, only a quarter of its value a year ago.
This is what insider dealing is all about.
Gordon Brown meets with zionist banker Victor Blank and gives him the nod to buy Britains largest Mortgage bank,
BBC starts a panic which send false rumours that HBos is in trouble.
Dealers form a concert party and short sell the shares.
Then when the price is at its lowest point they buy up the stock.
BBC ramps up the share price again and huge profits are made.
And huge losses by the poor pensioners who dumped the shares.
Standard Life call for HBOS insider trading probe
By Rosie Murray-West
Last Updated: 11:48pm BST 21/09/2008
A leading fund management group is believed to have sparked an investigation into insider dealing in HBOS shares immediately before last week's takeover plan.
Standard Life Investments said yesterday that the news that the bank was being bought by rival Lloyds "came out inappropriately".
"It is important that correct procedures are followed in future and we have ensured that this message has been received by those that need to know," a spokesman said.
City watchdogs are expected to investigate huge profits made by speculators in two minutes of trading immediately before the bank's rescue was made public.
Details of the takeover talks between Lloyds and HBOS were announced by BBC business editor Robert Peston on Wednesday morning at 9am, sending shares soaring from their low of 88p to 215p in an hour. The deal was not formally announced until four hours later.
advertisementHowever, in two trades at 8:57am and 8:58pm, two buyers alone acquired more than 20m HBOS shares at 96p. In total, around 160m shares changed hands in the moments before the takeover was announced, making a paper profit of nearly £190m for the traders and leading to suspicion of a leak.
Mr Peston said last night that he had told "almost nobody" about the deal until he broadcast his story for the BBC. "The information was very tightly controlled internally," he said. "As for externally, I'm assuming that these were negotiations at a very high level. We all know the Treasury, the Bank of England and the FSA knew, and so did Gordon Brown.
Other than that, there were a few advisers - but the talks had only been going intensely for a relatively short time. So it wasn't one of those deals where hundreds of people knew about it."
The Financial Services Authority (FSA), which regulates the City, refused to comment yesterday on whether it would investigate circumstances surrounding the HBOS rescue. "We never comment on individual investigations," a spokesman said. "We monitor unusual share movements as a matter of course."
There has also been criticism of the four hour delay between the BBC news report on the takeover talks and the confirmation by HBOS of talks over a rescue deal. An HBOS spokesman said yesterday that the FSA was "comfortable" with the approach the bank took over disclosing the talks."
Lloyds TSB agreed to pay 232p per HBOS share, valuing the company at £12.5billion, only a quarter of its value a year ago.
This is what insider dealing is all about.
Gordon Brown meets with zionist banker Victor Blank and gives him the nod to buy Britains largest Mortgage bank,
BBC starts a panic which send false rumours that HBos is in trouble.
Dealers form a concert party and short sell the shares.
Then when the price is at its lowest point they buy up the stock.
BBC ramps up the share price again and huge profits are made.
And huge losses by the poor pensioners who dumped the shares.