Financial Times FT.com

Trader charged with spreading false rumours

By Ben White in New York

Published: April 24 2008 22:03 | Last updated: April 24 2008 22:03

A Wall Street short-seller on Thursday was charged by the Securities and Exchange Commission with spreading false rumours in a case that suggests regulators are taking a fresh look at behaviour that many companies say is now rampant.

The case, which hinges on rumours about a Blackstone takeover deal, comes as the SEC faces growing pressure to investigate allegations that false rumours about Bear Stearns may have had contributed to its collapse last month.

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