AIMA slams short-selling cuts

The FSA has confirmed a temporary ban on the practice while Prime Minister Gordon Brown said more “permanent” rules may be introduced. Following suit, regulators in Australia, Taiwan, Germany, France and Belgium have also curbed short sales of financial companies. But the AIMA says emergency bans will not fulfil the intended aim of restoring financial stability. “In their understandable efforts to restore financial stability, several regulators around the world have recently issued emergency bans on short-selling, which AIMA doubts will achieve the intended results,” it says. “These...