07:01 19Sep08 RTRS-IRISH STOCK EXCHANGE <.ISEQ> - WITH EFFECT
FROM MIDNIGHT ON THURSDAY 18TH SEPTEMBER 2008, THE MARKET ABUSE
RULES (MARCH 2006) ARE AMENDED
07:03 19Sep08 RTRS-IRISH STOCK EXCHANGE <.ISEQ> - BANS SHORT
SELLING OF BANK OF IRELAND, ALLIED IRISH BANKS PLC, IRISH LIFE
AND PERMANENT PLC OR ANGLO IRISH BANK CORPORATION PLC.
on Reuters, the market is going to fly, shorts are going to be squeezed so hard…
Also rumours of Santander taking over BoI and Anglo taking over Nationwide.
and what do they think is going to happen when they lift the ban
I think I think this is a joke
I havnt started to get my head around it yet but the immediate issue is surely gonna be liquidity
synthetic irish banks short:
short the ISEQ and buy listed non-banking stocks.
So, how long will this ban last and what will happen when it ends? It didn’t seem to help in the US much in the long run.
Shorters in for some serious pain
Shorters make a nice scapegoat without addressing any of the reasons why they short the stock in the first place.
My thoughts exactly.
It doesnt mean banks are going to start lending again to eachother.
The underlying problems still remain.
Window dressing the new goal posts?
That would breach the rules.
Is it pure coincidence that shorts are banned and rumours of irish bank takeovers appear at the same time?
Will this rally last?
If shorts were so evil, could LEH, HBOS and jobs have been saved? If so, it shows that regulators (and everyone else) don’t understand the market. What would have happened if they were banned a week ago.
This doesn’t change my view of irish banks except (if sustained) it may make raising capital less punishing. At least now i can look at my pension fund.
Quite a lot of Hedge Funds ‘Must Die’ it seems .
More instability guaranteed !
unenforceable, unless they shut the futures and options exchanges.
regulators are pissing into the wind and they know it.
UK Times: “Banking shares soar after short-sellers retreat”
Here’s a theory: the reason the shares have soared is not because the regulator’s intervention really is a good thing, but because his widely reported intervention simply gives brokers a fresh opportunity to hit the phones and tell clients 'the regulator has acted, we’re back in play, it’s time to buy!"
Whether or not such regulator/government intereventions are a good thing, they always seem to be followed by a rally, with brokers always referring to media news, which always seem to report such interventions in a favourable light, regardless of their longer-term consequences.
Any comment about this would be much appreciated.
Yep. IFSRA have the champagne bottles out after all those late nights with the ties loosened and jackets off.
These rumours of false optimism are just as dangerous as “bank run” threads.
These FSA/IFSRA moves are desperate measures in desperate times.
It’s fingers in the dam stuff.
I’m in a difficult situation now. Bank shares are now a different species to the rest. It was hard enough valuing them before the ban, a lot of guesswork about how badly profits would be hit and how things would pan out.
Now, the Rules have changed. I have no idea when they’ll change back. Does the current price include a “Can’t be shorted Premium”? How much is that premium?
We literally have share prices now that we have to describe as “Old Money” and “New Money”. This is bonkers. Really seriously bonkers.
If shorts drove the price of Banks down to stupidly stupidly ridiculous prices then go out and buy them.
If the authorities believe that Bank of Ireland was priced at €3.54 but actually worth €5, €6 or €10 then buy the damn thing. Nationalise it. It would cost about €5bn
When this mess clears up and you eventually sell it for what it’s “worth” you’ll clear a huge profit, and in the meantime you’ll make a good dividend.
If you think buying it is too risky then Shorts aren’t the problem, so don’t tinker with them.
It’s like watching who wan’ts to be a Millionaire, and seeing them use up all their lifelines long before they get to the difficult questions.