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Germany moves forward against speculators

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Germany moves forward against speculators

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German Finance Minister Wolfgang Schaeuble says a more wide ranging ban on speculative trades should become law by early next month.

The cabinet approved the beefed up ban which is part of the campaign by Chancellor Angela Merkel’s government to limit financial speculation.

It says the euro zone debt crisis was made worse by so called short selling that is betting that the value of shares, euro government bonds and other financial instruments would fall.

It is particularly concerned about naked short selling in which investors bet against securities without owning or borrowing the underlying assets.

Last month Berlin moved unilaterally to impose an immediate but partial ban on naked short-selling.

That sent shockwaves through financial markets and upset some other European governments.