Probe into rumour-mongering widens

The Financial Services Authority (FSA) in Britain is teaming up with other financial services watchdogs as part of an expanding investigation into allegations of market abuses surrounding sudden drops in the share prices of financial institutions.

Details over the regulatory enquiry emerged in the aftermath of sudden and heavy falls in the stock prices of a number of financial institutions, including HBOS, a British bank, and Lehman Brother, a Wall Street investment bank, earlier this year.

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