FSA warns on market abuse

The Financial Services Authority today confirmed that it is investigating trading in UK financial shares in recent days.

Sally Dewar, managing director, wholesale and institutional markets, said: "There has been a series of completely unfounded rumours about UK financial institutions in the London market over the last few days, sometimes accompanied by short-selling. We will not tolerate market participants taking advantage of the current market conditions to commit abuse by spreading false rumours and dealing on the back of them.

"We remind market participants of the need to take extra care, in this market climate, to adhere to the market code of conduct."