SEC Takes Action To Rein In Naked Short-Selling

Law360, New York (September 17, 2008, 12:00 AM EDT) -- Amid extreme market turmoil, the U.S. Securities and Exchange Commission said Wednesday that it had adopted several rules to try to stop the abusive naked short-selling blamed for some of the current crisis.

Unlike this summer's ban on the naked short-selling of stocks of large banks and Fannie Mae and Freddie Mac, the new rules apply to the securities of all public companies. The changes go into effect Thursday.

“These several actions today make it crystal clear that the SEC has zero tolerance for abusive naked...
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