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Article: The Fed/ Treasury Gave Us TARP - How Will The SEC Protect The Market From Exposure To Naked Short Sales And Other Abusive Transactions?
- Article from:
- Mondaq Business Briefing
- Article date:
- March 17, 2009
CopyrightCOPYRIGHT 2009 Mondaq Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The Securities and Exchange Commission (SEC) adopted a number of measures during the second half of 2008 that limited short selling, particularly the short selling of the stock of financial companies. The SEC's stated purpose in adopting these measures was to stabilize the financial markets in the United States at a time of unprecedented market turmoil.
The measures enacted by the SEC include: (i) a temporary ban (which expired in the fall 2008) on short selling in the securities of Fannie Mae, Freddie Mac and 17 financial institutions, including, among others, Lehman Brothers, Morgan Stanley, Goldman Sachs and Merrill Lynch; (ii) a hard T+3 closeout requirement; ...