SEC Moves To Slow Down Fannie, Freddie Short Selling

Law360, New York (July 15, 2008, 12:00 AM EDT) -- With investor concern growing over the well-being of Fannie Mae and Freddie Mac, the U.S. Securities and Exchange Commission said Tuesday it would issue an order designed to enhance protections against naked short selling of the two companies' stock.

At a hearing of the U.S. Senate Committee on Banking, Housing and Urban Affairs, SEC Chairman Christoper Cox said the emergency order would mandate that all short sales of Freddie and Fannie are subject to a “pre-borrow requirement.”

He added that the SEC would undertake a rule-making...
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