Financial Times FT.com

Lehman Brothers

Hedge funds scramble on shorting ban

By Joanna Chung in Washington, Henny Sender in New York and James Mackintosh in London

Published: September 19 2008 19:40 | Last updated: September 19 2008 19:40

Hedge funds were forced to scramble to unwind trading positions on Friday after a massive assault by global regulators on short selling aimed at calming the turmoil in global markets.

The US Securities and Exchange Commission joined top market watchdogs in the UK, France, Portugal and Ireland to temporarily ban short-selling and other investors from engaging in trades allowing them to profit from falling share prices of financial companies.

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