U.K. Government Free to Lend RBS, Lloyds Stock to Short-Sellers

Discussion in 'Wall St. News' started by ASusilovic, Apr 17, 2009.

  1. U.K. Financial Investments Ltd., which oversees the government’s shareholdings in banks, is allowed to lend out the stock to short-sellers, who were only months ago attacked by politicians for destabilizing the banks.

    UKFI, which owns 70 percent of Royal Bank of Scotland Plc and has a 43 percent holding in Lloyds Banking Group Plc, legally may loan stock, according to information obtained by Bloomberg News under a Freedom of Information Act request. UKFI said it hasn’t so far loaned any of its shares, and has no current plans to do so. It added it’s a “commercial investor” and reserves the right to use all means available to investors.

    Short-sellers sell borrowed shares with plans to buy them back later at a lower price. Stock may also be loaned to make up for a shortfall between trades to avoid penalties for not delivering shares on time. Politicians and investors had blamed short-sellers for destabilizing markets in September, prompting the Financial Services Authority to impose a ban on short- selling financial stocks, a restriction only lifted in January.


    ROFLMAO ! :D :) :p :cool:

    Can you imagine knocking on Brown´s door at Downing Street ...knock, knock, it´s me, the short seller ! HAHAHAH