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interestrateripoff

Darling Kept In Dark As Fsa Lifted Ban On Short-selling

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http://www.guardian.co.uk/business/2009/ja...a-short-selling

A rift has opened up between the government and the financial authorities after a furious Alistair Darling was kept in the dark over the lifting of the ban on short-selling, which may have contributed to this week's tumultuous crash in the value of banking shares.

The chancellor is thought to have been given just one hour's notice by the Financial Services Authority that hedge funds would once again be able to place bets that bank shares would fall. Darling believes the ban will have to be reintroduced, given the fragility of the financial system.

Shares in high street banks have crashed since the ban was removed at the end of last week. Barclays lost a quarter of its stockmarket value on Friday and fell a further 10% yesterday to close at 66.1p. This values Barclays at just £5.3bn, the same as the profits it intends to report for 2008. There are rumours that it hopes to bring forward its results to end concerns about its financial health.

Lloyds Banking Group has plunged to just 45.1p, giving it a market value of £6bn. Royal Bank of Scotland, which unsettled the stockmarket after admitting on Monday it will make a record-breaking £28bn loss, has lost 70% to slump to 12p, a market value of less than £5bn.

Anxiety about the health of the banking system is compounding the problems facing the pound, which yesterday slumped to its lowest level against the dollar since 1985 - 35% down from its summer peak of $2.11 to as low as $1.362. The pound's fall was also caused by poor public finance figures, and the warning from the Bank of England's governor, Mervyn King, that unconventional action would be needed to prevent the economy melting down.

Banning short selling that'll make the banks solvent won't it!!!!!

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I know Darling has a poor reputation on here but I'm sceptical that he didn't know about the lifting of the ban. It would have been pretty high on his 'need to know' list. It was announced on the 9th Jan that it would be lifted on 16th Jan.

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They gave him one hour's notice - is it just me or does this sound like the financial boys continuing to look after themselves and run amok? Any chance to make money?

Doesn't Darling know how to use the calendar reminder in Outlook? Doesn't anyone in the Exchequer or the BOE?

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Perhaps he isn't a fan of HPC, if he was his economic predictions would be better.

All joking apart, the article smacks of cheap sensationalism: "kept in the dark", what does that mean?

Things are bad, but not THAT bad...

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:o

Hang on a second: everyobody knew about the ban being lifted - we even discussed it here on HPC.

How could AD not know?

Follows a common model for pychotic behaviour - problem, get annoyed, shout, blame someone and throw toys out the pram.

Both GB and AD are in the bunker - they are now officially detactched from reality, as Hilter was when he was losing the war. They fail to realise that their reality is not shared by investors, the general public or any other living person on this earth and when their expected outcomes do not match what is happening they go round the same cycle, get annoyed, shout, blame someone and throw toys out the pram..

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I thought Gordon was in the treasury again...he makes all the announcements, he saves the system, he is da man!

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All joking apart, the article smacks of cheap sensationalism: "kept in the dark", what does that mean?

Things are bad, but not THAT bad...

Perhaps Brown didn't tell him?

I thought cheap sensationalism is what the press does best?

Could be a govt excuse that they really didn't want this ban lifted the FSA did it so it's all there fault that share prices are collapsing.

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:o

Hang on a second: everyobody knew about the ban being lifted - we even discussed it here on HPC.

How could AD not know?

In fact the short sellng ban on financial stocks was always a limited term measure.

16 January 2009 was given as the termination date when the restrictions were first imposed by the FSA on 18 September 2008.

http://www.ft.com/cms/s/0/16102460-85a0-11...00779fd18c.html

Darling is either stupid or a liar.

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Perhaps he isn't a fan of HPC, if he was his economic predictions would be better.

Of course he knew, didn't he make the announcement that short-selling was to be 'suspended' way back when, and that it was a temporary measure.

Love the sarcasm interestrateripoff... you appear to be on a roll.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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