'Extreme circumstances' in stock markets lead to shorting ban
Updated on 18 September 2008
The Financial Services Authority announces a ban on the short-selling of financial company shares.
The regulator said the practice was legitimate in normal conditions but could not be tolerated in what it called "extreme circumstances".
The move came as stocks failed to rally despite emergency action by six of the world's top central banks to protect share prices following four days of turmoil.
The US Federal Reserve released £100bn to other central banks for distribution in their own countries, but despite early gains the markets fell again and Lloyds TSB saw a fall in its share price following the deal to take over HBOS.
At the close of trading the FTSE finished down 0.66 per cent and France's Cac 40 was one per cent down.
Germany's Dax was marginally up.
HBOS's share price rose by 17 per cent, but Lloyds TSB's price fell 15.5 per cent.
