Saturday, Jun 14, 2008

Is the government going to extend this kind of help to other ailing industries?

Guardian: Lenders and house builders revived by FSA

"The Financial Services Authority (FSA) has decided to clamp down on investors shorting a company's shares if it is in the middle of a cash call, since it believes this practice helped drive the likes of HBOS and Bradford & Bingley below their rights issue price."
Wonder what's driving that then? The FSA never interfered in the market before when these companies were doing well and their shares prices were going up ...

Posted by paul @ 11:09 AM (401 views) Add Comment

8 Comments

1. whiteknight said...

No. The banks gets special treatment as usual.

Saturday, June 14, 2008 12:05PM Report Comment
 

2. whiteknight said...

Other companies are fined for not releasing timely information.

Saturday, June 14, 2008 12:07PM Report Comment
 

3. converted lurker said...

'tis a capitalist system looking after the banking 'elite', shares go up = free market, shares comes down = scandalous behaviour. And the hedge funds playing punts and shorts get their backing from where precisely? What a joke, you couldn't make it up........

Saturday, June 14, 2008 01:36PM Report Comment
 

4. whiteknight said...

Does anybody know the procedure for applying and obtaining a banking licence in the UK?

Saturday, June 14, 2008 02:05PM Report Comment
 

5. paul said...

I wonder if this 'initiative' really will help. It requires share dealers to declare if they hold shares which they are thinking of selling. But there's a gaping loophole - sentiment can change quickly, and if it does, they can say that they didn't inetnd to sell but then the market circumstances forced them to.

Like much of what the FSA does, I doubt this will have any effect at all.

Saturday, June 14, 2008 09:15PM Report Comment
 

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7. This comment has been removed as it was found to be in breach of our Blog Policies.

 

8. Spectator said...

does this mean any company can now find out if it is being shorted by doing a right issue?

Saturday, June 14, 2008 10:38PM Report Comment
 

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