Will the UK and/or US will re-introduce a shorting ban, just as Australia did?

Discussion in 'Stocks' started by m22au, Jan 23, 2009.

  1. m22au

    m22au

    On Wednesday, Australia reintroduced a partial shorting ban for financial stocks:

    http://www.asic.gov.au/ASIC/asic.ns... selling of financial securities?opendocument

    Wednesday 21 January 2009

    ASIC today said it would keep the ban on covered short selling of financial securities in place until Friday, 6 March 2009.

    There is talk that the UK could reintroduce a ban:

    http://www.financemarkets.co.uk/200...-to-reinstate-short-selling-ban-if-necessary/

    However, since the ban was lifted last week, banking shares have taken a pounding but the FSA’s chairman, Lord Adair Turner, defended the return of short-selling and told the BBC there was no evidence that this practice had led to this week’s falls in banking shares.

    Lord Turner added that there has been no indication that short-selling or abusive short selling is a major role, and if there is, he is prepared to reinstate the ban if necessary.