You Hear from a Client of Good Standing That a Major

You hear from a client of good standing that a major market participant has taken major losses on its proprietary trading book and is desperate for liquidity. You are not convinced that the story is true, but have a friend at another bank who you know has very large exposures to this firm and would be seriously damaged by a default. What advice does the Model Code give?

A) Unsubstantiated information which you suspect to be inaccurate and which could be damaging to a third party should not be passed on in any circumstances.
B) Unsubstantiated information which you suspect to be inaccurate and which could be damaging to a third party should be discussed only with great care.
C) Unsubstantiated information which you suspect to be inaccurate and which could be damaging to a third party should be reported to the regulator in order to provide warning of possible systemic problems.
D) You have a duty to warn counterparties but should make clear that the information is unsubstantiated.