Lunchtime-ish Links: This sounds bad for Deutsche's London fixed income business
Confusion appears to reign this morning over what Germany's naked short ban refers to exactly. "The whole market is after a bit of clarity to be honest," the head of one government bond trading desk tells us.
Into this miasma, steps Robert Peston, the BBC's vocally challenged business editor. Pesto points out that the ban applies only to financial services firms regulated by BaFin. He also says that Deutsche's London office has "agreed" to abide by the ban - despite the FSA saying that it didn't apply to branches of German banks in the UK.
Surely, however, this is bad news for Deutsche, which is likely to find itself at a disadvantage compared to the likes of Goldman and Morgan Stanley, which (as Pesto points out) will be free to continue naked shorting, and selling CDS in the euro area government bonds and German bank stocks, to their hearts' content?
"So you can't buy protection unless you are long the bonds - does that mean the person selling you protection has to be short the bonds? And if they are short the bonds, are they naked short the bonds?" (Alphaville)
France won't be joining the short selling ban. (Alphaville)
Germany wants the UK to join the short selling ban.
Germany is hiding a big banking problem. (SeekingAlpha)
Foreign hedge funds will be able to sell services in Europe if they face tough oversight and rules at home. (MSNBC)
George Osborne had 'close to no allies' around the table on European hedge fund rules. (FinAlternatives)
Mr Osborne wants to keep his powder dry for a much bigger debate next month over plans to create an EU-wide regulatory system for financial services. (FT)
Osborne to cut British rate of corporation tax to 25% (from 28%) in effort to build Britain's position as a financial centre. (Telegraph)
Conservative right wingers are urging Cameron not to take punitive action against the banks. (Financial Times)
80% of Goldman's client trading recommendations for the past quarter were a flop. (Bloomberg)
Goldman clients increasingly wary of firm's conflicts and trading orientation. Naked Capitalism)
Somehow, Goldman has managed to lose value over the past 12 months, even as the S&P 500 has risen by 25%. (Reuters)
An upset at Credit Agricole. (Bloomberg)
Jefferies has hired a senior credit analyst from BlueRay Asset Management! (Financial News)
Sir Fred Goodwin has not been banned by the FSA and is still on its list of approved persons. (Telegraph)
The Pru deal is enough to pay the salaries of 4,250 bankers. (Pestowire)
23 year old student cheated his way into America's Ivy League institutions. (The Times)
