UPDATE 1-Germany ok for now with solo short ban -BaFin head

By Jonathan Spicer

MONTREAL, June 7 (BestGrowthStock) – Germany is willing to stand
alone with its new ban on short selling, but countries will
eventually need to cooperate in order to make significant
changes in financial markets, the head of Germany’s financial
regulator said on Monday.

Germany roiled markets and surprised its European Union
partners last month by announcing a unilateral ban on the
speculative trades in top financial stocks, euro zone
government bonds and related credit default swaps (CDS).

“Implementing significant change requires a group of
countries to pull in the same direction,” Jochen Sanio,
president of Germany’s Federal Financial Supervisory Authority
(BaFin), said at a conference here of international financial
regulators.

“What you see at the moment is a solo run by Germany
because we did not to postpone decisions on this matter
indefinitely,” he said. “We think that we had to stand up
against speculative excesses now.

“We are not afraid to stand alone for some time,” he
added.

Naked short selling involves selling securities without
owning or borrowing the underlying assets in the hope of buying
them back at a lower price.

EU regulators have said there is no consensus on whether to
copy Germany’s ban on naked selling of CDS contracts. France
has said it has no plans to adopt similar rules.

Despite the negative response to Berlin’s move, Germany
appears poised to widen the ban to cover all shares.

Germany and Greece have blamed speculators for using CDS
contracts, a type of insurance against default, to bet that
government debt woes in euro zone countries would deteriorate.

Stock Market Research

(Editing by Leslie Adler)

UPDATE 1-Germany ok for now with solo short ban -BaFin head