Shorting of equities of the financial variety may be prohibited for now.  But the shorts will just find new places where shorting is not prohibited.  Once the covering in financial stocks is done, whoever has money left or who has not been wiped out entirely will redirect their efforts to other stocks, commodities, financial instruments, etc.  The volatility and hedging in other asset classes will likely go wild.   If you couldn’t stand the consequences of shorting financial stocks, good luck dealing with the losses and volatility in the rest of the financial system.