Germany is considering to extend the ban on uncovered short sales of shares of ten banks in the country, so that it applies to all listed shares in Germany, Air Force forward. During the last week, Germany surprised its European partners, such as bans unilaterally uncovered short sales of shares of the ten leading banks in the country, government bonds and swaps related to the protection of non-performing debt for the period ending March 31, 2011. The current proposal from the Treasury is the prohibition to apply for shares and derivatives of all companies. The proposal is likely to be discussed by the country’s Cabinet next week, includes the creation of new “system transparency” for short sales, which include control over some of the financial regulator BaFin. Germany is making high reductions of costs and needs to reduce expenses in case to prevent the strong European economy from the financial and debt crisis. Germany approved high support for Greece last days, which will be returned from the European banks during next years.
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