SEC to investigate malicious rumours

Regulatory News

NEW YORK - The US Securities and Exchange Commission (SEC) has responded to pressure to launch a probe into market abuse rumours. The US regulator is looking into the possibility that malicious rumours caused the share prices of investment bank Lehman Brothers and government-sponsored lenders Freddie Mac and Fannie Mae to tumble last month.

SEC chairman Christopher Cox said his agency would join fellow regulators at the Financial Industry Regulatory Authority and the New York Stock Exchange

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