Rights issue rumours loom over HBOS

HBOS is rumoured to be launching a rights issue this week to bolster its capital base by £4bn.

The UK’s largest mortgage lender is expected to reveal write-downs of up to £3bn.

This follows significant write-downs and a rights issue announcement at Royal Bank of Scotland last week.

A spokesman for HBOS says: “We simply never comment on media speculation on this point. The bottom line is HBOS is a strong financial institution with significant capital resources.”