Shorting ban sends bank shares soaring

[aceboy]

The interesting thing about the whole Ban is that it is only in 29 ftse100 listed companies, and does not apply to market makers...

http://www.bloomberg.com/apps/news?p...9cjWk&refer=uk

Edit: also you do not have to close out existing short positions, so the market jump today may not be as a result of this ban

[stackpole]

The market's back up 8%?

Gordon has saved us! Hooray for the Son of Manse!

[KentPhilip]

It's not the same at all. The profits/losses might be the same (unlikely as spread betting involves leverage where as shorting may not involve it), but in terms of effect on the market spread betting is a side activity. You might as well think that spread betting on football match affects its outcome - not unless some insiders are betting and going to rig the result.

Well that is certainly true - it is a side show really.

But then what is to stop the big shorters like that bloke the Daily Mirror had a go at yesterday setting up their own "spreadbet firms" and go for gold.

[KentPhilip]

The market's back up 8%?

Gordon has saved us! Hooray for the Son of Manse!

Gordon is a tosspot.

[AtW]

Well that is certainly true - it is a side show really.

Yes it's a side show, basically punting - it has no effect on the market, I don't really care about that (so long as insiders don't abuse it) - volumes are low too.

[Peoplesoft bloke]

Gordon is a tosspot.

Wow that's radical - most posters on here seem to have formed a cosy back slapping consensus that he's a genius

[aceboy]

Another interesting article: http://www.bbc.co.uk/blogs/thereporters/robertpeston/

They are surging in part because of the FSA's crackdown on short-sellers but mostly because of the overnight news that the US Treasury Secretary, Hank Paulson, and the Chairman of the Federal Reserve, Ben Bernanke, are preparing a bold - or possibly impetuous - plan to tackle what can now be classified as the most severe and intractable malfunction of the banking system since the late 1920's.

The drying-up of liquidity from money-market funds is in part what drove HBOS to acknowledge that the game was up, and that a rescue takeover by Lloyds TSB was the best form of protection for its savers and shareholders.