Stockbrokers to face inspection over share-price falls

The Financial Regulator has reportedly contacted a number of top stockbrokers warning them that they face inspection over share-price falls earlier this month.

Patrick Neary is investigating allegations that some traders started rumours on the stock market which led to a number of banking stocks falling in value.

Shares in the banks plummeted last week before rising sharply once the rumours of financial trouble proved to be false.

Reports this morning say the regulator has given the stockbrokers a week to review their trading records, emails and discussions with clients before reporting back to him.