The hunt is on for the speculators who sought to profit on the collapse in HBOS share price after spreading false rumours. But how can the regulator catch the guilty parties? By Nick ClarkFriday, 21 March 2008
City regulators have started an exhaustive manhunt for the perpetrators of the smash-and-grab raid on HBOS, the bank which saw 20 per cent wiped off its value in an hour through unfounded market rumours about its financial health.
Totally false speculation caused panic selling of HBOS shares on Wednesday, prompting an unprecedented reaction from regulators furious that unknown speculators with short positions in the bank had made a killing by deliberately planting the untrue gossip.