BERLIN (MNI) – Germany’s ban of naked short-selling on some assets
is a “clear signal to markets” that the government aims to counter
excessive speculation, Finance Ministry spokesman Michael Offer said
Wednesday.
Offer reaffirmed that the government aims to widen the ban in a law
to be adopted by the cabinet next week. The government wants to
“contribute to calming markets and strengthen confidence,” he said at a
regular government press conference here.
A ministry draft seen by MNI foresees a ban of naked short-selling
on all shares of German businesses listed on German exchanges. Moreover,
naked short-selling is to be prohibited on all bonds issued by Eurozone
federal, regional or local governments.
The draft also stipulates a prohibition of certain credit default
swaps as well as currency derivatives in euros if there is no hedging
purpose detectable.
Offer also announced that German Finance Minister Wolfgang
Schaeuble will meet US Treasury Secretary Timothy Geithner on Thursday
in Berlin to discuss financial market topics. The meeting is to be
followed by a press conference at around 10:00 GMT, the spokesman said.
Germany hopes for an agreement at the upcoming G20 meetings on the
introduction of a financial transaction tax on the global level, Offer
said. “Otherwise we want to lobby for an European solution,” he
reaffirmed.
The spokesman said the Finance Ministry welcomed proposals by EU
Internal Market Commissioner Michel Barnier for a harmonisation of bank
levies at the EU level.
The German bill on the introduction of a bank levy to fund future
crisis cost is planned to be approved by the cabinet before the summer
recess, Offer said.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
[TOPICS: MGX$$$,M$X$$$,M$G$$$,MFX$$$,M$$CR$,M$$FX$]
