IMA defends stock lending

The FSA last night placed a ban on short-selling of financial stocks, from Tuesday September 23 to January 16, 2009, in a bid to calm the financial crisis. The IMA has responded by pointing out that the practice of stock lending makes an important contribution to the orderly operation of the market. However in view of the present conditions, the fund management trade body has stated that it is imperative that confidence in the markets and the financial system is maintained and is therefore advising its members to carefully consider the implications of any participation in the lending of s...