U.K. Financial Investments Ltd., which oversees the governmentâs shareholdings in banks, is allowed to lend out the stock to short-sellers, who were only months ago attacked by politicians for destabilizing the banks.
UKFI, which owns 70 percent of Royal Bank of Scotland Plc and has a 43 percent holding in Lloyds Banking Group Plc, legally may loan stock, according to information obtained by Bloomberg News under a Freedom of Information Act request. UKFI said it hasnât so far loaned any of its shares, and has no current plans to do so. It added itâs a âcommercial investorâ and reserves the right to use all means available to investors.
Short-sellers sell borrowed shares with plans to buy them back later at a lower price. Stock may also be loaned to make up for a shortfall between trades to avoid penalties for not delivering shares on time. Politicians and investors had blamed short-sellers for destabilizing markets in September, prompting the Financial Services Authority to impose a ban on short- selling financial stocks, a restriction only lifted in January.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a8Jm1nqXzNiw&refer=home
ROFLMAO !
Can you imagine knocking on Brown´s door at Downing Street ...knock, knock, it´s me, the short seller ! HAHAHAH
UKFI, which owns 70 percent of Royal Bank of Scotland Plc and has a 43 percent holding in Lloyds Banking Group Plc, legally may loan stock, according to information obtained by Bloomberg News under a Freedom of Information Act request. UKFI said it hasnât so far loaned any of its shares, and has no current plans to do so. It added itâs a âcommercial investorâ and reserves the right to use all means available to investors.
Short-sellers sell borrowed shares with plans to buy them back later at a lower price. Stock may also be loaned to make up for a shortfall between trades to avoid penalties for not delivering shares on time. Politicians and investors had blamed short-sellers for destabilizing markets in September, prompting the Financial Services Authority to impose a ban on short- selling financial stocks, a restriction only lifted in January.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a8Jm1nqXzNiw&refer=home
ROFLMAO !
Can you imagine knocking on Brown´s door at Downing Street ...knock, knock, it´s me, the short seller ! HAHAHAH