Mish refers us to a piece in Minyanville. It suggests a recently introduced selective ban on short-selling is intended to support share prices in financials, so that more money can be drawn in by splitting shares and selling new tranches to the public.
To me, it feels like touting for sucker money. What happens later, when the short-selling ban is lifted? When the government (via regulators) begins to manipulate the market in this way, it looks like a sign that we are in trouble.