Looks like the all the banks were pushing hard for the government to manipulate the markets for their own benefit. It is also apparent why the ban was on all stock as the banks are heavily into long-only investment funds (eg NAB-owned MLC and Westpac's BT Investment Management).
It is really sickening to see the amount of moral hazard going on, private companies taking all the profits but putting the losses on others (eg government through bailout, hedge funds through short sell ban). I don't want to see any banks collapse but if they take huge risks they should pay some sort of price when things go wrong. If the banks are still solvent let them make greatly reduced or no profits for a few years. However I couldn't see this happening with the grossly excessive compensation schemes the bank executives are on, largely tied to increasing profits and share price.
KEY Rudd Government ministers including Treasurer Wayne Swan consulted with major banks before the Australian Securities and Investments Commission announced the controversial blanket ban on short selling on Sunday afternoon.
BusinessDaily has learned that while the government and ASIC had discussions with the National Australia Bank and other banks from the big end of town, they did not consult with stockmarket regulator, the Australian Securities Exchange, nor industry groups that had the most to lose from the ban such as hedge fund body, the Alternative Investment Managers Association.