Article: Germany bans naked short-selling

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Germany bans naked short-selling

Holder Hansen, Andreas Rinke

Reuters, 18 May 2010

Germany, in an attack on the financial speculation on which it blames much of the euro zone’s debt crisis, on Tuesday announced a ban on some high-risk bets that prices of bonds and stocks will fall.

Analysts, however, were skeptical that Germany’s surprise move to ban some trades in a strategy known as naked short selling could be effective in taming market volatility, with one saying it suggested “desperation.”

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