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Financial crisis/short-selling ban – French banks

Financial crisis/short-selling ban – French banks

Published on August 12, 2011
Communiqué issued by the Ministry for the Economy, Finance and Industry

Paris, August 12, 2011

François Baroin, Minister for the Economy, Finance and Industry is monitoring especially closely the proper operation of the financial markets and the implementation in real time of the measures to counter rumours and take proceedings against their originators.

In this respect, he welcomes the decision taken by the President of the Financial Markets Authority to ban short selling of a list of French financial stocks for a period of 15 days. He welcomes the fact this decision is a coordinated one by European regulators under the auspices of the European Financial Markets Authority.

In the face of the financial crisis, the French government has strongly committed itself to improving regulation, greater transparency and stronger oversight of the financial markets, particularly through the Banking and Financial Regulation Act of 22 October 2010. France will continue to promote these decisive priorities for the proper operation of the financial markets and financial stability so as to deliver growth and employment, both in the framework of the French G20 presidency and in the European negotiations. In this respect, the European regulation on short selling and sovereign credit derivatives currently under negotiation must be adopted rapidly in order to create the conditions for ambitious progress.

Over the past few days, the financial markets have been affected by the circulation of groundless rumours concerning the French banks. In this respect, the government warmly welcomes the communiqué which the Financial Markets Authority issued yesterday afternoon, reiterating that anyone circulating groundless information is liable to incur a penalty and stressing that it will draw all the necessary conclusions, together with that of the Governor of the Banque de France who reiterates the solidity of the French banks and their resilience.

François Baroin stresses the government’s commitment to ensure financial stability, avoid market abuses and combat all forms of speculation./.

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