| The SEC announced that it would make some exceptions in the rule
restricting naked short selling of 19 financial stocks taking effect
on Monday. Those on the list include Fannie Mae, Freddie Mac, and
Lehman Brothers. Corporate executives have been blaming short-sellers
for the sharp drops in financial firms recently. On the other hand,
hedge funds, for whom short-selling is an often used strategy, have
been protesting against the restrictions. They say that naked
short-selling, when investors short-sell a stock they do not own, is
not widespread and that the rule is excessive. The SEC has said that
it will make the necessary exceptions to avoid limiting market makers'
liquidity. |
