|
|
Article: Banks isolate hedge funds as Wall Street gets safety net TERROR IN AMERICA Fed and US regulators move to shore up markets as traders forecast 10% fall in shares
- Article from:
- The Independent (London, England)
- Article date:
- September 17, 2001
- Author:
CopyrightCopyright 2001 The Independent - London. Provided by ProQuest LLC. (Hide copyright information)
|
CONCERTED EFFORTS will be made to freeze hedge funds out of the US
market when Wall Street reopens for trading today after its longest
shutdown since the First World War.
Broking houses have instructed dealers not to "short" the market -
selling stocks they do not own to drive down prices - and several
large US institutions have decided not to loan stock to hedge funds,
the traditional means by which the funds cover their short positions.
The voluntary action comes as the Federal Reserve and US
regulators prepare a massive safety net to help support the market
when trading resumes this afternoon after a four-day shutdown
following the terrorist attacks on New York and Washington.
The Fed ...