Bafin lifts ban on short-selling
AFP - [email protected]
Published: 1 Feb, 2010 CET.
Updated: Mon 1 Feb 2010 15:04 CET
German financial market regulators on Monday lifted a ban on short-selling, where investors bet on a company's share price losing value, saying the chaos the practice had caused in 2008 had subsided.
"The situation on the financial markets has improved so much in the past few months" that an extension of the short-selling ban, which expired on January 31, was not necessary, German stock market watchdog Bafin said in a statement.
In the mayhem that followed the collapse of US investment bank Lehman Brothers in September 2008, Bafin banned the short-selling of stock in 11 financial firms, including Deutsche Bank, Commerzbank and Allianz.
Short-selling was blamed at the time for putting additional pressure on the banks as they reeled from losses in the fallout from the US subprime home loan debacle.
Bans in other countries including Britain have also been lifted.
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"The situation on the financial markets has improved so much in the past few months" that an extension of the short-selling ban, which expired on January 31, was not necessary, German stock market watchdog Bafin said in a statement.
In the mayhem that followed the collapse of US investment bank Lehman Brothers in September 2008, Bafin banned the short-selling of stock in 11 financial firms, including Deutsche Bank, Commerzbank and Allianz.
Short-selling was blamed at the time for putting additional pressure on the banks as they reeled from losses in the fallout from the US subprime home loan debacle.
Bans in other countries including Britain have also been lifted.
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