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Why bans on short selling are misguided & counterproductive - the academic case ref Wirecard

Tom Winnifrith Friday 22 March 2019

 

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Wirecard is a German company which looks like a Norfolk and walks like one and where the FT - to its credit - has done sterling work making that clear. The German regulator has responded by banning shorting of this stock. A letter from Safkhet capital to the foolish Krauts explains why this is folly. This is a very clear explanation of why it NEVER makes sense to ban shorting.

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About Tom Winnifrith
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Tom Winnifrith is the editor of TomWinnifrith.com. When he is not harvesting olives in Greece, he is (planning to) raise goats in Wales.
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Tom Winnifrith Bearcast: £2.5 billion M&G fund gated, you were warned

Today’s news is shocking but should not shock you as I have warned this would happen. Anyone invested in commercial property shares is insane for reasons I explain again and as for an open-ended fund they are even more insane. I also look at the latest accounting wrongdoing at Ted Baker (TED) and M&C Saatchi (SAA). Do no auditors show professional scepticism these days. Then there is comment on Tomco (TOM) and value destruction. Oh and there is a snake story too.

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