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Germany To Ban Naked Short-Selling From Midnight - Lawmaker
Last update: 5/18/2010 12:56:16 PM
FRANKFURT (Dow Jones)--Germany will ban so-called naked short-selling from midnight, a lawmaker with the ruling Christian Democratic Union told Dow Jones Newswires Tuesday.
"The ban of naked short-selling will be valid from midnight," Norbert Barthle, the CDU budget spokesman, said Tuesday.
He added that Chancellor Angela Merkel will announce the plan in her speech to the lower house of parliament Wednesday morning.
So-called naked short selling--which differs from short selling in that the sold shares aren't borrowed in advance--came under fire at the height of Greece's struggle to refinance its debt, with many euro-zone governments saying such transactions in credit default swaps, a type of default insurance, artificially inflated Greek funding costs.
-By Andrea Thomas, Dow Jones Newswires; [phone]; [e-mail]
(END) Dow Jones Newswires
May 18, 2010 12:56 ET (16:56 GMT)

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