JP Morgan Predicts US Short-Selling Ban Amid Regional Bank Crisis

JP Morgan Predicts US Short-Selling Ban Amid Regional Bank Crisis

US regulators may temporarily ban short-selling to restore confidence in regional banks, according to analysts at JP Morgan. The bank purchased First Republic from government receivership last week as the US banking system experienced a rollercoaster ride of share prices. Pacific Western’s shares fell by 60% on Monday, following a succession of other banks hit by falling stock prices. In September 2008, temporary short-selling bans were introduced in the US and UK amid the global financial crisis.

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