One of the causes of the banking collapse was Hedge fund managers having the ability to bet on movements in share price, otherwise known as short selling. Following the near collapse of HBOS after shorting of its shares the government banned this method of trading banking and other vulnerable shares. In January 2009, the Government lifted the ban on short selling and as soon as they did so shares in Barclays collapsed. I blogged on this and wrote a letter to the Daily Post criticising the lifting of the ban.
We may well criticise the European institutions but at least they have the courage to take on these fund managers and traders who exploit and damage our companies value and they intend to announce a clampdown tomorrow of short selling following the recent collapse of the Euro and the Greek financial crises.
Good for them I say, they are showing Brown and Darling the way in regulating irresponsible trading. For the full story go to Euractiv