Germany on Tuesday temporarily banned short selling of debt issued by eurozone countries, according to a statement by the country’s financial services regulator. BaFin cited “extraordinary volatility in debt securities issued by eurozone countries” in its rationale for the move. The ban also extends to so-called ‘naked CDS’ on eurozone debt, and to naked short sales of the shares in ten financial institutions, including Deutsche Bank, Allianz and Commerzbank. The announcement saw the euro slip 1.6 per cent to a fresh 4-year low of  $1.2162.

This entry was posted by Stacy-Marie Ishmael on Tuesday, May 18th, 2010 at 21:32 and is featured in The Closer (18 May 2010) . Tagged with allianz, Bafin, commerzbank, deutsche bank, europe, evil speculators, germany, naked CDS, naked credit default swaps, naked short sales, naked short selling. Edit this entry.