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EU push to crack down on naked short selling - papers

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France and Germany have called for rapid agreement on new EU rules to ban elaborate forms of speculation on national debt and company shares.

In a show of solidarity intended, in part, to compensate for their policy quarrels in other areas, Chancellor Angela Merkel and President Nicolas Sarkozy sent a joint letter to the European Commission yesterday calling for European measures to outlaw "naked" selling of stocks and insurance on sovereign, or national, debt.

In a letter seen by the Independent, Merkel and Sarkozy write: "The return of strong volatility in the markets makes it necessary to question certain financial methods.

"The Commission's work should include the possibility of a Europe-wide ban on naked, short sales of certain shares and securities and certain naked sales of credit default swaps on sovereign bonds." FULL STORY...

SocGen trader Kerviel accused of taking 'inhuman' risks

Alleged Societe Generale "rogue trader" Jerome Kerviel took "inhuman risks" that "no bank in the world could take" his ex-boss has told a Paris court.

Kerviel, 33, is blamed for losses of 4.9bn euros (then worth £4.3bn), writes the BBC.

He has been under investigation since SocGen unveiled the losses in 2008, which it said were caused by unauthorised deals carried out by him.

He denies accusations of forgery, breach of trust and unauthorised computer use. FULL STORY...

 

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