Parsad Posted May 5, 2009 Share Posted May 5, 2009 In an article today, SEC Chief Mary Schapiro says that they are determined to creat new short-selling legislation. There are arguments being made on both sides regarding the need for or relegation of short-selling. http://finance.yahoo.com/news/SEC-chief-says-new-apf-15135872.html?sec=topStories&pos=3&asset=&ccode= This is now driving me absolutely crazy. Six years after the original attack on Fairfax and all this publicity on short-selling, and the government is thinking about all sorts of rules for short-selling which will do nothing regarding the real problem...naked short-selling. I don't want to see the government enact certain rules they are thinking about instituting, such as banning all short-selling in an issuer if the price falls 10% in a day. There are some companies where the price will deserve to fall, and perhaps all the way to zero because of fraud, bankruptcy, etc. What they need to do is enact some sort of requirement so that fail to delivers are eliminated. Or at least the lag between the short sale and delivery of certificates is minimized as much as possible. Be it through penalties against the broker dealers or legislated into law. Cheers! Link to comment Share on other sites More sharing options...
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