SHORT SELLING

Motion Text

That this House expresses major reservations at the recent decision by the Financial Services Authority to lift its ban on short selling; notes that the lifting of the ban coincided with a dramatic fall in the share prices of several major banks, including RBS, Lloyds and Barclays; expresses concern that Lansdowne Partners was able to make a profit of £12 million on the short selling of shares in Barclays, the share price of which fell by over 50 per cent. in the week immediately following the end of the ban; further notes that other countries such as Australia and Italy have maintained their ban on the practice; and urges the Financial Services Authority to reverse its decision and reinstate the ban for the sake of financial stability in the United Kingdom.