British authorities try to quell damaging financial rumors - International Herald Tribune

LONDON: In a rare move to calm investors' nerves, British financial authorities stepped forward on Wednesday to quench a string of "unfounded rumors" that had sent some financial stocks in London into a tailspin.

The Financial Services Authority said it had started an investigation into whether some traders spread rumors about British financial institutions over the last few days and might have profited from the decline in the stocks' share prices. Separately, the Bank of England, which almost never makes public statements about specific lenders, denied rumors that it met or scheduled to meet with executives at a British bank to discuss potential liquidity problems.


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