Europe curbs short-selling as credit markets swoon

European regulators will ban short-selling in four countries' financial stocks from Friday in a coordinated attempt to restore confidence in a panicky market hit by rumors and higher borrowing costs.

In a statement issued late on Thursday night, the European Securities and Markets Authority (EMSA) said Belgium, France, Italy and Spain were set to bring in the ban, which will vary in detail depending on the country.

But it's not clear to what extent the ban on short-selling will calm European markets that have repeatedly seized on rumors about the health and funding needs of euro zone governments, and more recently of some of its major banks.

There could also be questions about whether short sellers attention will just switch to other euro zone financial stocks that are not on the banned list.

Read Full Article from Reuters

- Posted: 2011-08-11 20:42:36

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