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FSA confirms additional applications to be added to shorters banned list

In a move which could seriously back fire on those companies involved it has been reported that a number of companies have applied to the FSA to see if their company shares can be added to the shorters banned list. This begs the question - 'What do these companies have to hide?'

Traders are very astute when looking into the financial background of many companies and while there are some rogue traders, highlighting any financial weaknesses or problems within a company is fair play by law. So why would a company apply for protection from the shorters? Why would they want to be seen to be running to the regulator at the first opportunity?

While names have not been confirmed there is speculation that a number of insurance companies were involved in the call to the FSA. This is a sector which has come under increasing scrutiny in the US and is set to come under the microscope in the UK. There will be problems for some UK companies, the details of which may not yet be in the public domain, but this is a free market.

It was interesting to see that the FSA has not added any more companies to the list as yet, reflecting the possible understanding that it would be unfair to meddle too much in the workings of the investment markets. After all, saving a troubled company now could lead to more problems in the future - as the US may be about to experience!

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