SEC To Examine Spread of False Information

July 14, 2008 7:51 AM EDT

This weekend, the SEC said they will conduct examinations aimed at the prevention of the intentional spread of false information intended to manipulate securities prices.

These examinations are in addition to the Commission's enforcement investigations into alleged intentional manipulation of securities prices through rumor-mongering and abusive short selling that are already underway.

SEC Chairman Christopher Cox 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. They will also provide an opportunity to double-check that broker-dealers and investment advisers have appropriate training for their employees and sturdy controls in place to prevent intentionally false information from harming investors."

NOTE: The SEC news is likely in response to reports Friday in the New York Times that the U.S. was considering nationalizing Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE). In addition, Lehman Brothers (NYSE: LEH) has been the subject of many rumors.

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