Britain's central bank met Thursday with the leaders of the country's main banking institutions to stave off further pressure on the financial markets.

Bank of England officials denied rumors that one of Britain's leading mortgage providers, HBOS, was seeking emergency funding.

Authorities said that rogue traders may have sought to make massive profits by creating false rumors about the bank's solvency.

Financial expert Justin Urquhart Stewart of Seven Investment Management says to spread rumors to make profits is against the law.

"If you conspire to put out false rumors to try to mislead the market, and to be able to twist it to your own advantage, that's illegal."

Britain's Financial Services Authority, or the FSA, responded by launching a criminal investigation.

The FSA's decision to crack down on unscrupulous traders showed its determination to swiftly restore some stability to the market. However, it also reflected just how nervous the financial system has become as a result of the credit crisis.

HBOS owns the Halifax and the Bank of Scotland, two of the country's most prominent lenders.

The alleged attempt to manipulate HBOS shares comes as Credit Suisse Group slashes its previously stated 2007 profit figures because of an internal investigation into securities valuations and "intentional misconduct" on the part of some of its traders.