Market Manipulation
British banking officials and financial regulators believe they have a potential rogue trader out there who may be manipulating the markets. If true, it makes one wonder exactly how much of the current madness in the financial markets is actually being driven by unscrupulous traders.
A hunt has been launched for a stock market trader who may have made £100 million in a "modern day bank robbery" after an attack on the share price of the country's biggest mortgage lender.
Shares in Halifax Bank of Scotland fell by 17 per cent as traders attempted to make a fortune by betting on the bank's falling stock.
Malicious rumours circulated by speculators were blamed for the run, which saw more than £3 billion wiped off the bank's value.
Britain's financial watchdog launched a criminal investigation to hunt down "ruthless" rogue traders, including one speculator thought to have made £100m from buying and selling shares during the day.
A senior HBOS executive said: "This is the modern day version of bank robbery."
The day's developments - which followed several days of turmoil on the world's stock markets - were triggered by the circulation of false information the state of HBOS's finances.
An email circulated in the City by an anonymous banker, seen by The Daily Telegraph, falsely alleged that a newspaper was to run an article today on problems at HBOS which "will raise the spectre of a run on the bank".
It was also falsely alleged that HBOS, Britain's biggest mortgage lender, had sought emergency talks with the Bank of England over the Easter weekend.
This doesn't exactly ispire confidence in the integrity of traders, does it? This is the second time a European financial scam has reared its head in recent months. How much of the market turmoil comes from things like this? One wonders.
Economy, World news | Gaius Wednesday, 19 March , 2008
By Neo, Thursday, 20 March , 2008 @ 3:18 pm
This just smells of George Soros