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Compressed Markets - When Will They Burst?

RUMORS AND MANIPULATION
Amid extreme market volatility in 2008, the SEC and other securities regulators announced plans to crack down on rumor-mongering that threatens financial institutions.
Since then, the SEC has opened a group of related investigations into the possible manipulation of the securities of six large financial issues involved in the recent market turbulence, Walter said. The companies were not identified.
In October 2008, the agency required large hedge funds, broker-dealers and other large investors to file statements under oath regarding trading and market activity in the securities and credit derivatives of financial firms.
SEC staff have been analyzing the data and focusing on claims that credit derivatives such as credit default swaps were being used to manipulate equity prices. Walter said that investigation has been split into "six separate investigations, which are proceeding as expeditiously as possible."
(Reporting by Rachelle Younglai and Karey Wutkowski; Editing by Tim Dobbyn and Brian Moss)