SEC Bans Short Sales of Financial Stocks Until October 2
The SEC, which had convened a late-night commission meeting Thursday to
consider several items, said in a statement early Friday morning it is
halting short selling on 799 financial stocks. The ban, which is
effective immediately, is set to last for 10 days, but could be
extended for up to 30 days. ...
The SEC announced other temporary measures, including a requirement for large institutional money managers to report short positions in certain stocks. It also eased restrictions on corporate stock buy backs, saying that will give companies greater flexibility to buy their own shares and help restore liquidity at a time "of unusual and extraordinary market volatility."
The SEC announced other temporary measures, including a requirement for large institutional money managers to report short positions in certain stocks. It also eased restrictions on corporate stock buy backs, saying that will give companies greater flexibility to buy their own shares and help restore liquidity at a time "of unusual and extraordinary market volatility."
I would prefer no bans but this is not unreasonable to me, given the stress the system has been under.
Rumors are that heavy short selling of financials was coming out of London and the Middle East, not from hedge funds in America.
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