After hastily announcing new regulations to go after short-sellers yesterday, German leaders have quickly realised the folly of country-specific regulations within the EU. Nothing’s to stop traders from going after these various instruments in other countries.
So now they’re on a campaign to get the rest of Europe on board. According to Bloomberg, Deputy Finance Minister Hans Michelbach is pushing the UK to join in, and then, hopefully the rest of the EU. Somehow we’d be surprised if the UK succumbed to this nonsense, given its desire to keep its place as a pre-eminent financial city. But stupider things have been done.
Meanwhile, investors have responded by hammering the German stocks. The DAX is off 2.7%.