An emergency conference call transfixed Wall Street, where some fear that troubled hedge funds might dump investments into the already-shaky markets.

In recent days there has been a range of false Internet reports that managed to gain great purchase across the globe while the truth is still logging on.

Shares of United Airlines lost nearly all their value when a false bankruptcy rumor swept financial markets.

Market chatter is one thing, malign rumor that distorts the market quite another.

The announcement, made before the markets opened in Asia, was meant to warn broker-dealers, hedge funds and investment advisers before trading started Monday.

Amid the desperation of the bear market, the art of the rumor, long the stock in trade of some on Wall Street, has become increasingly powerful.

The charges are the first the Securities and Exchange Commission has brought against traders accused of being rumormongers and short sellers.