SEC Halts Short Selling of Financial Stocks to Protect Investors and Markets (took them long enough)

[tannybogus]

Washington, D.C., Sept. 19, 2008 — The Securities and Exchange Commission, acting in concert with the U.K. Financial Services Authority, today took temporary emergency action to prohibit short selling in financial companies to protect the integrity and quality of the securities market and strengthen investor confidence. The U.K. FSA took similar action yesterday.
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Under normal market conditions, short selling contributes to price efficiency and adds liquidity to the markets. At present, it appears that unbridled short selling is contributing to the recent, sudden price declines in the securities of financial institutions unrelated to true price valuation. Financial institutions are particularly vulnerable to this crisis of confidence and panic selling because they depend on the confidence of their trading counterparties in the conduct of their core business
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http://www.sec.gov/news/press/2008/2008-211.htm

Look quick! a regulation!

[billyoc]

1. Good. No need to ever let them start back up again.

[aquart]

2. Selling short is FRAUD. Time to admit it.