Morgan Stanley praises anti-short selling moves

by Richard Kilner

Story link: Morgan Stanley praises anti-short selling moves

US investment bank Morgan Stanley has enthusiastically welcomed the recent action taken by Attorney General Cuomo to prevent short selling leading to the downfall of financial institutions.

In perhaps the most tumultuous week in the financial world since World War Two Morgan Stanley has seen its fellow investment bank Lehman Brothers, the fourth largest in the US, collapse.

Likewise, Merrill Lynch fell into difficulties, but was rescued by Bank of America in a takeover deal.

Morgan Stanley has praised Cuomo’s decisive stance, and his call for the SEC to enforce a temporary halt to short selling of financial stocks.

Many are of the view that such actions by speculators have fuelled the tumbling share prices of major banks, which has had a deep and damaging effect on the market as a whole.

The investment bank also applauds the actions of the Financial Services Authority (FSA) which has moved to freeze short selling in the UK.