They know whats coming! so pathetic attempt to forestall the market.. well whats that then?

There is much 'spin' and window-dressing to look as though they are 
in control and doing something.  As it happens several brokers say 
that the amount of 'short-selling' on HBOS was negligible.

The real trouble was caused by Brown-Darling's handling of Northern 
Rock .  The Rock was badly, verging on fraudulently, managed.  But 
all shareholders and investors were protected from loss and, 
therefore, anybody wanting to get out of HBOS knew for certain that 
whatever they did the state would bail them out.

Northern Rock should have been allowed to go bust! (but it traded 
mainly in Labour heartlands so NewLabour decided to break the 
'rules') Brown-Darling thus were the cause of the HBOS disaster.

Another ill-thought out panic measure.

xxxxxxxxxxxx cs
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SKY NEWS   18.9.08
The Financial Services Authority has announced a crackdown on the 
short selling of shares beginning at midnight tonight.


The FSA wants to stabilise markets that have been convulsing for days

Chancellor Alistair Darling immediately welcomed the provisions, 
which will prohibit traders from off-loading shares only to buy them 
back soon after at a lower price.

The news comes after the collapse of investment bank Lehman Brothers 
sent financial markets at home and abroad into meltdown.

New York attorney general Andrew Cuomo has also announced a wide-
ranging probe into illegal short-selling on Wall Street.

The US investigation will centre upon investment banks Morgan Stanley 
and Goldman Sachs, whose shares have dived dramatically since 
Lehman's demise, and insurance giant AIG, which was saved from near-
collapse on Tuesday.

The FSA is acting upon the suspicion that some bankers are using the 
turmoil to cash in.

The FSA measures are designed to stop traders creating a lack of 
confidence in companies by selling shares, actively contributing to a 
fall in price from which they profit when they buy them back.

Halifax Bank of Scotland blamed the practice for wiping more than 
£3bn from its value before a takeover by Lloyds TSB reversed its 
fortunes.

Hector Sants, chief executive of the FSA, said:"While we still regard 
short-selling as a legitimate investment technique in normal market 
conditions, the current extreme circumstances have given rise to 
disorderly markets.
"As a result, we have taken this decisive action, after careful 
consideration, to protect the fundamental integrity and quality of 
markets and to guard against further instability in the financial 
sector."

Sky News business editor Michael Wilson applauded the FSA's 
intentions but said it would be difficult to enforce the regulations.
He said: "You can't really stop the market, for better or for worse, 
doing what it does.
"People trade on information - that's the way it is. But when it is 
used in a criminal way, that is incredibly difficult to prove."
===========================
TELEGRAPH   18.9.08
Market turmoil: FSA bans speculators from short-selling
By Robert Winnett and James Quinn

Stock market speculators will not be allowed to profit from the 
falling share prices of banks and insurance companies, financial 
regulators have announced.

The Financial Services Authority (FSA) unveiled an immediate 
crackdown on the activities of hedge funds and other speculators 
after Gordon Brown said the financial system needed to "clean up".

The City regulator introduced a ban on the "short-selling" of banking 
and other financial shares on the London stock market. Short-selling 
is essentially a form of betting; a technique used by hedge funds and 
speculators to profit from falling share prices.

They borrow the shares before selling them on in the hope that the 
price falls before they have to buy them back. If the price does 
fall, they pocket the difference - paying a cut to the original owner.

The Government is growing increasingly alarmed that other banks may 
collapse if speculators are allowed to continue their activities 
unchecked. Alistair Darling, the Chancellor, and the British Bankers' 
Association welcomed the FSA's move.

HBOS, the country's biggest mortgage lender which today announced an 
emergency takeover from Lloyds TSB, had blamed short-sellers for the 
sharp fall in its share price which precipitated its demise.

The American authorities also introduced curbs on speculators 
following complaints from senior investment bankers.

Mr Brown said: "I think we've got to look at where there has been 
irresponsible behaviour and I've said for some time that we need 
reforms in the system. We've got to clean up the financial system, we 
don't want these problems recurring in the future."

Hector Sants, the chief executive of the FSA, said: "While we still 
regard short-selling as a legitimate investment technique in normal 
market conditions, the current extreme circumstances have given rise 
to disorderly markets.
"As a result, we have taken this decisive action, after careful 
consideration, to protect the fundamental integrity and quality of 
markets and to guard against further instability in the financial 
sector."

The short-selling ban will be in place until January and threatens to 
undermine the activities of dozens of hedge funds based in London. 
However, there were doubts last night over whether the bar would help 
the stock market as the share prices of several American investment 
banks fell sharply yesterday in New York despite new short-selling 
controls being put in place.

Peter Hahn, a former banker and fellow at Cass Business School said 
the FSA move was "more politics than economics". "The regulators are 
trying to close down every possible avenue through which they could 
be criticised over HBOS," he said. "But will it make a difference? I 
don't think so."
"I think this can be a red-herring. The HBOS and Lehman shorts appear 
to have been right."

Regulators stepped in after a multi-billion pound international 
rescue package for the world's financial markets appeared to be in 
danger of failing.

Central banks around the world agreed to lend up to $300 billion to 
banks in an attempt to bring normality back to the markets. Stock 
markets in London and New York fell despite the move.

The FTSE-100 index of Britain's biggest firms closed down 32 points 
at 4,880. British Airways was one of the biggest victims - recording 
its biggest fall since September 2001 - amid fears that previously 
wealthy bankers will stop travelling first class.

In New York, fears are growing over the plight of Goldman Sachs and 
Morgan Stanley, two of the last remaining independent investment 
banks. Shares in Morgan Stanley fell by up to 24 per cent while 
Goldmans' shares fell by 17 per cent.

Morgan Stanley is now in talks with potential partners, while Goldman 
Sachs continues to stress its independence but is known to be 
assessing its options should they be necessary.

Morgan Stanley is discussing a merger with US regional bank Wachovia. 
It is also talking to China Investment Corporation (CIC), an 
investment fund linked to the Chinese government, about the prospect 
of it raising its stake in the bank.  CIC bought a 9.9pc shareholding 
for $5.6bn in December 2007. Today it was forced to vehemently deny 
American reports that its chief executive had told a rival "we're not 
going to make it" during takeover talks.

At the end of an unprecedented week, the global financial crisis has 
already claimed two major investment banks, the world's biggest 
insurer and Britain's biggest savings and mortgage bank.

This morning, central banks in Britain, America, Europe and Japan 
agreed to offer loans of up to $300 billion to American banks.

The funds were released amid renewed fears that banks had stopped 
lending to one another and the financial system was grinding to a 
halt. On Wednesday, many investors moved money into gold and 
Government bonds amid fears over the banking and financial system.

The so-called "flight to safety" caused the value of American 
Government bonds to fall to levels not seen since the Second World 
War. Today the price of oil rose sharply after several days of sharp 
falls.

The Bank of England agreed to lend about $40 billion (£22 billion) as 
part of the international bail-out scheme. In addition it loaned £66 
billion to British banks. The banks had requested £202 billion 
underlining the importance of central banking funds in the crisis.
Paul Mortimer-Lee, head of market economics in the London office at --
BNP Paribas, said the move reflected concerns that the financial 
markets now appear to be facing their gravest problems since the 
Depression.
"We're high on a mountain, with a thin rope and holding on by our 
fingertips," he said. "Are policymakers scared? They should be."

George Bush, the American President, said he was doing everything 
possible to rectify the turbulent financial situation.

The American regulators also introduced curbs on short-selling 
yesterday. The American President said: "Our financial markets 
continue to deal with serious challenges. As our recent actions 
demonstrate, my administration is focused on meeting these challenges."