John McFall tells FSA to keep an eye on shorting

Shorting ban ends, banking stocks go mental. Here's what the chair of the Treasury select committee has said to the FSA in an open letter to the regulator:

In the light of the extreme market turbulence in bank shares in the week since the ban was lifted, could you please confirm that the Financial Services Authority is actively monitoring the connection between the volatility in bank shares and the repeal of the ban on short selling. I am particularly concerned given that I have heard disturbing anecdotal evidence that some hedge funds have been shorting stocks in UK banks. To this end, could you also please confirm that you will not hesitate to re-introduce the ban if it is found that short selling has contributed to the undermining of stability in the banking sector.