Board-Level People Risk – the HBOS Rights Issue

The 2008 HBOS Rights Issue
In April 2008, HBOS was on life support when, in a last throw of the dice, the Board decided to launch a rights issue to raise some £4 billion in capital. This was a spectacularly ‘bad’ decision, not because the issue was a complete flop with just over an 8% take-up, but because the prospectus that the Board approved was to put it mildly a ‘work of [half] fiction’, particularly as regards the level of provisions for credit defaults.

Continue reading “Board-Level People Risk – the HBOS Rights Issue”