Rumors

(b) Listen to the rumors.

One interesting fact about rumors: they are often true.
Also, rumors tend to run ahead of public disclosure of significant problems.
It is important to pay attention to what is being said in the street about particular companies.
It is also important to consider such information carefully so that false rumors are not perpetuated.

2003 - Dealing With Insolvencies In The Collection Of Reinsurance, Prepared by Peter H. Bickford*, For the American Conference Institute: Conference on Reinsurance Claims and Collections - 39p

2021 - Lessons Learned: Eric Dinallo, Journal of Financial Crises - 6p

(p6) - I wrote an op-ed for the [Financial Times] that lays out that there's a law, that [hedge fund manager] Bill Ackman and I argued about.
- About not disparaging or questioning the solvency of an insurance company.
- You can short the stock all day, and you can go out there and trash MBIA stock all day.
  - But when you start to question its solvency, that's actually against the law.
<Financial Times Article: 2008 0731- FT - Dinallo - Tackle false rumours about insurance companies>