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Short-selling banned on Spain's Liberbank to stem market contagion

Investors fear that Liberbank, Spain's smallest publicly listed bank, faces similar real estate challenges that sank Popular, and may need to raise capital to cover losses.


MARKET regulators prohibited short-selling on Spanish lender Liberbank SA after its shares dropped 41 per cent last week, when a competitor was taken over because of a run on deposits.

The Spanish securities regulator CNMV, working in concert with the European Securities and...