Monday, Jan 05, 2009
FSA threaten to reintroduce ban without warning
guardian.co.uk: FSA to end short-selling ban on bank shares
The Financial Services Authority today defied calls from politicians to maintain the ban on short selling introduced to protect HBOS from speculative attacks at the height of last year's banking crisis.
The City regulator will no longer prevent traders taking out positions which allow them to profit from falls in share prices but will instead demand that they disclose their positions to the stockmarket.
Posted by plato @ 08:45 PM (268 views) Add Comment
2 Comments
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1. paul said...
The ban on short-selling was always an ill-conceived market evasion tactic.
The HBOS short sellers in whose name the ban was introduced were, of course, completely correct in their analyses of the strengths of the banks. They were made meeja pariahs at the time for coming to that conclusion.
2. bystander said...
Paul they were made ''meeja pariahs'', not for their analysis of the banks weakness but for their capitalising on it. Otherwise Robert Peston would have been lynched for revealing NR's decline.