SNP shadow treasury spokeswoman Alison Thewliss told openDemocracy that hedge funds that were short-selling British companies were involved in a “kind of predatory behaviour… it should stop”.
Alex Cobham, chief executive at the Tax Justice Network, called on the government to introduce an excess profits tax “without delay”.
“Those businesses that are profiting from the massive state intervention needed to protect society from the pandemic should be required to deliver at least 50% to 75% of their excess returns in tax, to support the health services and public services we're all relying on,” he said.
Prem Sikka, professor of accounting at the University of Sheffield, also questioned the economic value of short selling.
“These people are taking minimal risks. They are not really creating anything. They are getting rich but they are not creating any jobs or products. They only serve the people behind the hedge funds,” Sikka said, adding that the government should introduce a windfall tax on hedge fund profits.
A spokesman for Marshall Wace declined to comment on Burberry specifically but pointed to a statement from the Financial Conduct Authority on 17 March that said short selling can play a role in “maintaining open markets that operate with integrity” by “supporting effective price formation, enhancing liquidity and enabling risk management.”
The Financial Conduct Authority referred openDemocracy to another statement on short selling. “We have never initiated a ban under the new powers given to us by the European Union short-selling regulation,” it said.
“While we cannot rule out that this will be appropriate in particular circumstances, we set a high bar on imposing any bans.”
Odey Asset Management declined to comment.
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