Naked Shorting Slowed By SEC Rules: GAO Report

Law360, New York (August 27, 2009, 2:31 PM EDT) -- Rules enacted by the U.S. Securities and Exchange Commission to stop abusive short-selling of stocks in 2004 and 2008 caused a brief, steep drop in the number of securities not delivered, a government report has found.

Although it is difficult to determine whether the failure to deliver stock borrowed for a short sale reflected a technical foul-up or a deliberate attempt to drive down the price of a stock, the U.S. Government Accountability Office said in a report released Wednesday that making permanent a rule requiring...
To view the full article, register now.