FSA to ban short-selling of financial stocks

It is being reported that the short-selling of financial stocks is to be banned in the United Kingdom from midnight tonight under new rules drawn up by the Financial Services Authority (FSA). The ban will prevent investors from creating or adding to short positions in all publicly quoted financial companies. The ban will remain in force until January 16 2009 when the FSA will publish a comprehensive review of short-selling rules.

Interesting, very interesting and not good news for hedge-funds or spread betting, I wonder what Mike Smithson will make of this development.