FSA to review market rumour controls

The review follows the conclusion of the regulator's inquiry into events surrounding the rumours which led to a dramatic fall in the price of HBOS shares. On Wednesday 19 March 2008, HBOS shares fell 17pc in a matter of minutes following speculation that the bank was in trouble and seeking assistance from the BOE. Subsequently, a number of market commentators speculated that that the sharp fall in price was the result of rumours spread by unscrupulous traders to make a profit. However, despite the FSA stating it was likely rumours contributed to the fall in the share price, it has not...