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Germany Plans To Tighten Financial Regulations

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Germany Plans To Tighten Financial Regulations

Business

Germany Plans To Tighten Financial Regulations

Germany Plans To Tighten Financial Regulations

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Germany is banning so called naked short-selling of eurozone government debt and shares of major financial companies. European officials are trying strengthen control of markets. Naked short selling was cited as one of the factors in world markets' turbulence during the 2008 financial crisis.

RENEE MONTAGNE, host:

NPR's business news starts with efforts to stabilize European markets.

(Soundbite of music)

MONTAGNE: Even so, across Europe, stock prices are down sharply and the euro also fell to new four-year lows. This came after German market regulators announced a ban on a certain kind of trading. The ban effects so-called naked short-selling in certain investments. Short-selling is betting that the value of investment will drop and naked short-selling is a riskier form of this. German officials say the new rule is aimed at upholding financial stability.

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