Tuesday, 6 January 2009

Cable 'worried' by lift of short-selling ban...

. When blame finally does become an issue for the current economic mess then regulators will be scrutinised heavily. I can't help but feel the Financial Services Authority decision to lift the ban on short-selling UK shares will not be looked upon kindly in that light.

Short-selling is when investors borrow shares in a company which they then sell in the hope of buying them back later at a lower price. So, surely Cable is right to say banks will now be able to 'gamble against the tax payer' who has just lashed a considerable amount on trying to save the financial sector.

Cable said;

“I’m worried about the fact they’re lifting the ban and don’t see the necessity for it. This wasn’t just a British ban. It was recognised to be dangerous…when it got out of hand. I believe it has a role to play, but we’re talking about one part of stock here, we’re talking about banks."

Summing it up rather neatly he carried on;

“When you have a fire raging you don’t start throwing more paraffin around and making it worse.”

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