FSA clamps down on false market rumours

The measures come as the FSA concludes its report into the rumours spread about financial difficulties at HBOS in March which were linked to huge slumps in the bank’s share price. Several of the rumours identified HBOS by name, the FSA found, and they contended the Governor of the Bank of England had cancelled his Easter travel plans in order to resolve a liquidity problem at HBOS and/or that the Bank was “bailing out” HBOS. However, the regulator found that despite the likelihood the rumours contributed to the fall in the share price, it had not uncovered evidence they were spread as p...