Germany Extends Short-selling Ban

BERLIN (AP) — Germany's market regulator on Friday extended until next year a temporary ban on short-selling of shares in 11 financial sector companies.

The regulator, BaFin, said the ban now runs through to Jan. 31, 2010.

The ban was imposed last September following the collapse of Lehman Brothers Holdings Inc. in the United States. It was due to expire on May 31.

In short-selling, investors borrow shares and sell them in the hope that they will go down. Then they buy them back at the lower price and pocket the difference. If the stock goes up, short-sellers lose money.

The ban applies to shares in Aareal Bank AG, insurer Allianz SE, AMG Generali Holding AG, Commerzbank AG, Deutsche Bank AG, Frankfurt stock exchange operator Deutsche Boerse AG, Deutsche Postbank AG, reinsurers Hannover Re AG and Munich Re AG, Hypo Real Estate Holding AG and MLP AG.