How does this work then?
So the FSA has studied the rumours and the short selling that took down the HBOS price back a while. Excellent. They seem to have found not a lot: Certainly, nothing that actually merits prosecution.
Despite the failure to take decisive action against any orchestrators of the HBOS share price fall, news which will disappoint the City, the FSA believes the comprehensive nature of its investigation will have a \’prophylactic\’ effect on those tempted to spread false rumours about a company\’s financial health.
One of two things must be true here. Either, no one actually did anything illegal, so why would a report stating this make people less likely to do such in future?
Or, some people did do something illegal but the investigation can\’t pin it on them. So again, why would this act as a prophylactic?
So basically the FSA is just whistling in the wind there, isn\’t it?