The UK Financial Services Authority confirmed that it is investigating possible abusive trading in the shares of financial firms in recent days.

“There has been a series of completely unfounded rumours about UK financial institutions in the London market over the last few days, sometimes accompanied by short-selling,” said Sally Dewar, managing director, wholesale and institutional markets.

“We will not tolerate market participants taking advantage of the current market conditions to commit abuse by spreading false rumours and dealing on the back of them,” Dewar added.

“We remind market participants of the need to take extra care, in this market climate, to adhere to the market code of conduct,” she concluded.