S.E.C. to intensify efforts to stop false rumors

Stephanie Clifford and Jenny Anderson report at the nytimes.com that "The Securities and Exchange Commission announced on Sunday that it and
other regulators would begin examining rumor-spreading intended to
manipulate securities prices." "The issue is a notoriously challenging one for the S.E.C. Rumors have
long been a part of Wall Street’s fabric, and to prove rumor-mongering
is a difficult task, especially with 24-hour news and communications
technology like instant messaging and text messaging. But Wall Street
executives insist that false information is permeating the marketplace
as never before. Since Wall Street firms are highly leveraged
businesses that need outside financing, confidence is crucial, and
rumors can overshadow the strength of their businesses, executives say."

July 14, 2008 In: Current Affairs Comments (None)