David Kirkpatrick

September 24, 2008

The no-short list grows

I’ve already put my thoughts on the anti-capitalist move by the SEC to ban the short selling of certain stocks out there. Predictably everyone wants a little protection from the free and open market leading to more companies being added to the no-short list.

Here’s a NYT article via AccountantsWorld covering the very subject.

From the second link:

The list of companies that regulators are protecting from short-sellers keeps growing, as do the questions surrounding it.

By Monday evening, the number of companies on the list rose to nearly 900, from 799 on Friday, when the Securities and Exchange Commission sought to restrict bearish bets against financial companies to help stabilize the markets.

 

Nearly every major bank is now included, along with large insurance companies and others. Trading in bank stocks withered on Monday amid uncertainty over the rules and the sweeping bailout that the Bush administration has proposed for financial companies.

But many questions remain. Some analysts — and a few firms initially left off the list — complained that the initial S.E.C. roster was incomplete.

Want to see just how ridiculous this whole process becomes once the stinky can has been opened? Here’s a bit from later in the article:

By Monday evening, the Ford Motor Company, which also owns a bank, was added to the list.