HBOS shares plunge by 50%

HBOS shares continue to fluctuate for a second day as prices plummet by 50% to lows of 88p per share.

The shares are yo-yoing amid rumours that HBOS is at an advanced stage of negotiations to merge with rival lender Lloyds TSB.

The Financial Services Authority has reiterated that HBOS is a well-capitalised bank in a bid to control the wilding dipping share price.

At time of writing HBOS shares had stabilised, trading at 186p per share.