U.K. bans SHORTING of financial stocks …

After the SEC only prohibited something, which was and still is illegal anyway … the “naked short selling” …

The U.K. goes one step further …

Read here :

Britain’s Financial Services Authority on Thursday banned short-selling of financial stocks and prohibited any increase in new bearish positions in the sector. Also, disclosure will be required on all positions of more than 0.25% of a stock. The regulator said it may extend the bank to other sectors. The ban is due to remain in force until Jan. 16, but it will be reviewed in 30 days. “While we still regard short-selling as a legitimate investment technique in normal market conditions, the current extreme circumstances have given rise to disorderly markets. As a result, we have taken this decisive action, after careful consideration, to protect the fundamental integrity and quality of markets and to guard against further instability in the financial sector,” said Hector Sants, chief executive of the FSA.

I have only one question left …

When will it become obligatory to BUY stocks and hold them forever???

Tags: FSA, manipulation, short selling

This entry was posted on Donnerstag, September 18th, 2008 at 19:09 and is filed under FDAX. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.