Dear Customer, The Securities and Exchange Commission, acting in concert with the U.K. Financial Services Authority (FSA), today took temporary emergency action to prohibit short selling in financial companies to protect the integrity and quality of the securities market and strengthen investor confidence. The action is immediately effective. All open orders to short any of these 799 stocks will be canceled. Please refer to http://www.sec.gov/news/press/2008/2008-211.htm for in-depth details of the order.
yep, it is an election year.
my take: this will not stop banks from failing.