From the SEC RELEASE NO. 58166 / July 15, 2008
False rumors can lead to a loss of confidence in our markets. Such loss of confidence can lead to panic selling, which may be further exacerbated by “naked” short selling. As a result, the prices of securities may artificially and unnecessarily decline well below the price level that would have resulted from the normal price discovery process.
Here is the list of banks and brokers where “naked” short selling has been outlawed by the SEC’s Christopher Cox. And it’s not just US institutions…
BNP Paribas Securities Corp
Bank of America Corporation
Barclays
Citigroup
Credit Suisse Group
Daiwa Securities Group
Deutsche Bank Group
Allianz
Goldman Sachs
Royal Bank
HSBC Holdings
J. P. Morgan Chase & Co
Lehman Brothers Holdings
Merrill Lynch & Co
Mizuho Financial Group
Morgan Stanley
UBS AG
Freddie Mac
Fannie Mae
The new rules come into effect on Monday for two weeks (for starters).
Related Links
SEC to fight short selling of financials - FT story
