Darling plans immunity for whistleblowers
Alistair Darling plans to give financial regulators powers to grant City whistleblowers immunity from prosecution in return for evidence on market manipulation.
In an interview with the Guardian, Darling said that the plans are part of a package of measures needed in a "period of unprecedented uncertainty".
"I can't allow us to get into a situation where people quite deliberately manipulate markets for personal gain and with the potential to destabilise the financial system," he said.
"If a handful of people are up to no good, we have to make sure the authorities have the tools to do the job," he added.
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The move comes amid fears that lies are being circulated by short-sellers, who offload shares and buy them back when the price falls.
Last week, the Financial Services Authority (FSA) was looking into allegations of potential market abuse after rumours that HBOS is in need of emergency funding.
The Financial Services Authority has recently faced criticism over its handling of the Northern Rock crisis. Earlier this week, it announced plans to overhaul its banking supervision procedures after admitting there were major failings in its dealings with the now nationalised lender.
