Short-selling ban on European banks extended

Short-selling bans on a number of French, Italian and Spanish banks introduced earlier this month have been extended until the end of September in a bid to stem market volatility.

Regulators said it was necessary for the bans to be extended until market volatility subsides, reports the FT. The French regulator, the Autorité des Marchés Financiers, said it will review the restrictions next month. "The aim is to lift the ban as soon as market conditions allow it," the AMF said. France introduced the ban two weeks ago, following Société Générale slumping 15% in a single day's trading as short sellers rounded on the stock, which pushed its share price to its lowest level since the credit crisis.