Shorting ban sends bank shares soaring

[Turion]

The soaring bank prices today are indicative of a massive short selling conspiracy for a few to profit by exacerbating the current turmoil. At last the FSA sprung a trap for these rats. A long time coming. Hope these spivs have a nice financial hangover.

None of you got caught out I hope?


http://uk.biz.yahoo.com/080919/214/i728k.html

[ThomasSoerensen]

why don't they just fix the current problems by stating by law that prices of houses and shares can only go up - and inflation will forever remain at 2%

Boomed!

[AtW]

At last the FSA sprung a trap for these rats.

I reckon those rats got out of market already and now just wait for another good moment - all FSA achieved is that they will short other companies than financial sector.

[KentPhilip]

This short selling ban is a farce. All that will happen is that instead of speculators borrowing shares to sell short they will enter into contracts with current owners of the shares, who will then sell the shares themselves. You can't ban people from selling their own shares.

In any case, you can still short shares using spreadbet firms such as CMCMarkets - which I will be doing later today if this rally continues.

[AtW]

In any case, you can still short shares using spreadbet firms such as CMCMarkets - which I will be doing later today if this rally continues.

Interesting. So you are fully aware of FSA's ban on short selling and you plan to do it later today? Wilful infringement that is...

[Dow Jones]

This short selling ban is a farce. All that will happen is that instead of speculators borrowing shares to sell short they will enter into contracts with current owners of the shares, who will then sell the shares themselves. You can't ban people from selling their own shares.

DJ: what makes you think that this hasn't happened already?

In any case, you can still short shares using spreadbet firms such as CMCMarkets - which I will be doing later today if this rally continues.

DJ: spreadbet is slightly different from shorting, in the same way as fut/opt are

[Moscow Mule]

How very frustrating. I was up 60 points on HBOS (march) yesterday and closed the bet.

Would have been an additional 20-30 points on it today...

[KentPhilip]

Interesting. So you are fully aware of FSA's ban on short selling and you plan to do it later today? Wilful infringement that is...

Going short is a facility explicitly offered by CMCMarkets. Had it been illegal then CMC would have banned it this morning. They haven't.

Yes spread betting and shorting are physically different operations. But the effect on profit/loss is almost exactly the same.

I don't see short selling it as unethical at all. All that short selling is is borrowing shares from someone with the promise to return them a few days later, for a small fee (which you will honour), selling them to someone who wants to buy them at the market price, waiting, buying them from someone who wants to sell them at the market price (which has gone down if the short has been a successful trade) and returning them to the person from whom you borrowed them.
Everything you have done is with the full consent of everyone involved at every stage.

Anyone who criticises short sellers - its just sour grapes that you didn't have the balls to make the trades yourselves.

[AtW]

But the effect on profit/loss is almost exactly the same.

It's not the same, but it is indeed very different operation from shorting - that involves selling shares which may affect market, where as spread betting doesn't. I suppose I'll let you off this one.

[ace00]

Be Afraid

Labour MP John Cruddas said: “In the wake of casino capitalism and with the onset of recession, the state is the only means society has of protecting itself from the destructive forces of global capitalism.”

Nationalise it all. GKB (Gordon Knows Best).