SEC Probes Rumor Controls At Wall Street Firms

Law360, New York (July 14, 2008, 12:00 AM EDT) -- In a rare Sunday announcement, the U.S. Securities and Exchange Commission revealed new efforts to root out any intentional rumor-mongering aimed at inappropriately affecting stock prices.

The SEC will conduct immediate examinations, with assistance from the Financial Industry Regulatory Authority and New York Stock Exchange Regulation Inc., the agency said.

“The examinations we are undertaking with FINRA and NYSE Regulation are aimed at ensuring that investors continue to get reliable, accurate information about public companies in the marketplace,” said SEC Chairman Christopher Cox. “They will also...
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