Utah Draws Ire With Naked Short Selling Law

Law360, New York (May 30, 2006, 12:00 AM EDT) -- The Securities Industry Association is considering suing the government of Utah after state legislators there paved the way for hefty fines against so-called naked short sellers with a unique bill.

The Washington, D.C.-based group, Wall Street’s prime trade association, said the bill violated federal law and would have unintended consequences for the very companies it was penned to protect.

Signed into law Friday by Gov. Jon Huntsman, the bill modifies the Utah Uniform Securities Act, beginning July 1, to allow Utah-based companies to fine brokerages $10,000...
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