Italy Bans Short-Selling In Monte Paschi For Three Months, Forgets To Ban Buying Of CDS

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Yesterday we got the first sure sign that Italy’s banking system is near collapse when in a flashback to the Greek financial crisis days of 2010-2011, Italy’s bank regulator banned short selling in Monte Paschi shares for the day. Today, we can conclude that the Italian bank crisis is set to get far worse, because moments ago, Italy’s banking regulator just announced that what was supposed to be just a temporary measure has been extended for the next three months and shorting in BMPS shares is now prohibited until October 5.
Consob bans for three months net short positions on Banca MPS shares – The prohibition shall apply from tomorrow 7 July 2016 until 5 October 2016 – It affects derivatives and market makers as well Consob, with Resolution 19655 of 6 July 2016, decided to temporary prohibit net short positions on Banca Monte dei Paschi di Sienashares – BMPS (ISIN code IT0005092165).
The ban will be enforce for the next three months, from tomorrow 7 July 2016 (start of day) until 5 October 2016 (end of day).

This post was published at Zero Hedge on Jul 6, 2016.