Wachtell Weighs In On Possible Short-Selling Rules

Law360, New York (June 18, 2009, 12:00 AM EDT) -- The white-shoe firm of Wachtell Lipton Rosen & Katz has weighed in with its take on abusive short-selling in a letter to the U.S. Securities and Exchange Commission that supports circuit-breaker and price-test solutions.

Wachtell's June 17 letter, signed by partners Edward D. Herlihy and Theodore A. Levine, notes that "action the commission attempts to take against manipulative short-selling will not be completely effective without parallel, reinforcing reforms applied to the derivatives market, particularly with respect to credit default swaps."

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