What is going on?

I was preparing to go for lunch when my boss shouted across to me - What happen to Barclays? How come the shares are suspended? I am supposed to be the know-it-all as far as news are concerned since I spend a good part of my morning dissecting financial newspapers to prepare a noon update commentary for the bank.

I, of course, have no idea since I was just about to hit the "Send" button on the email for the commentary distribution. Hold on a minute, I went straight to Bloomberg and saw a Barclays-related headline - "Barclays's del Missier Takes Over Credit Trading". Has someone been sacked? After all, Stan O'Neal of Merrill Lynch and Citi's Prince left in the last two weeks amid heavy losses suffered at the two banks due to subprime problems. Instinctively I shouted "Change of Leadership!" (not wrong - right?). Then I soon realised this change of responsibility has already been announced in September, so Bloomberg was just picking up old news. I felt really silly. So much for being in the know.

The afternoon was very eventful as credit spreads swung and FTSE/Wall Street plunged. Many websites such as Bloomberg, CNBC started posting rumours reports. For once, I believed the nightmare might be real. Writedown of 2 billion pounds ? 5 billion? 10 billion?

The sword of Damocles was finally lifted when Barclays PLC chief executive came out to reassure the market - all things' good.

Lesson learnt - it's so easy to jump to conclusion without exercising discernment, very much like me shouting across the room. It would be so easy for someone to pick up that and pass it on. A rumour without ANY ground. Amid the recent disclosure ad fears about subprime losses, it is even easier to jump on the bandwagon. Then again, we all know who look silliest at the end.