Markets Fall As Germany Bans Naked Short-Selling

Law360, New York (May 19, 2010, 7:09 PM EDT) -- Germany sent European financial markets into a tizzy Wednesday when it announced temporary bans on credit default swaps, naked short-selling of eurozone government bonds and naked short-selling of transactions in the shares of 10 of its largest banks.

BaFin, Germany's financial regulator, issued a statement Wednesday announcing that bans would be in place through March 2011 as a way to protect against the instability in Europe's financial market.

The “spreads of credit default swaps on credit default risks of several countries of the eurozone had widened...
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