SHORT SELLING

Early day motion 780, tabled 11 February 2009 by Baroness Clark of Kilwinning (Labour). Signed by 40 members.

That this House expresses major reservations at the recent decision by the Financial Services Authority to lift its ban on short selling; notes that the lifting of the ban coincided with a dramatic fall in the share prices of several major banks, including RBS, Lloyds and Barclays; expresses concern that Lansdowne Partners was able to make a profit of £12 million on the short selling of shares in Barclays, the share price of which fell by over 50 per cent. in the week immediately following the end of the ban; further notes that other countries such as Australia and Italy have maintained their ban on the practice; and urges the Financial Services Authority to reverse its decision and reinstate the ban for the sake of financial stability in the United Kingdom.

Signatures by party: Labour 31, Liberal Democrat 4, Independent 2, Conservative 1, Scottish National Party 1, Social Democratic and Labour Party 1.