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April 2008

Markets: False rumours abound


It’s pitiful trying to blame short sellers for the woes of the financial system.


The UK’s banking regulator, the Financial Services Authority, got very excited in March when rumours that HBOS might be facing a liquidity squeeze led to a 19% drop in the mortgage lender’s share price and set off worries of yet another bank failure.

In the event, HBOS was not pushed over the edge. But Sally...


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