Not satisfied with taking down the names of everyone shorting Italian stocks so it could give them disappointed looks and ask them if they feel good about themselves for making Nonna cry over her lost pension, Italian securities regulator Consob has started using a little “moral suasion” to get their buddies to cut them off.
Italy’s market regulator has recommended to stakeholders who have lent shares in Italian companies to retrieve them, Consob head said on Wednesday, confirming reports of a move aimed at curbing short-selling. “Yes, we’ve exercised moral suasion by asking all those who have lent shares to retrieve them,” Consob Chairman Giuseppe Vegas told journalists on the sideline of a conference.
He added the request was not binding.
If share lending dries up, short sellers will need to resort to naked shorting. Which, wait … still seems to be legal in Italy?