Thursday, August 11, 2011

European banks stocks rise on rumor of short sell ban

The government is no match for reality

Brussels - RBS, up 8%; Societe Generale, up 6%; Deutsche Bank, up 4.5%; and Unicredit, up 2.4%, are rising on a rumor of a short selling ban that the whisper campaign says could be imposed by the EU.

History shows that such bans cause a short term rise in stocks and securities for very short periods. The U.S. Short-selling ban cause a very brief rally of 11%, which soon faded away in 2008-09.

No comments:

Post a Comment