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Thursday, July 24, 2008

Shorts press their bets

Now that the Fed owns $400 billion of questionable paper,it looks like the Government wants to get serious about shortselling, with this two-pronged approach.

This seemed to be overlooked today, just like the the first time Chris Cox gave testimony saying that you couldn't short the banks and GSE's.

WASHINGTON -(Dow Jones)- Securities and Exchange Commission Chairman Christopher Cox said U.S. regulators intend to extend restrictions on short- sales to the entire market.

"That's our intent," Cox said in response to questions at a House Financial Services Committee hearing on Thursday.

Cox told reporters after the hearing that the SEC staff also is discussing changes that would require disclosure of significant short positions, similar to requirements to divulge big long position in stocks. Cox raised that possibility in an op-ed published Thursday by The Wall Street Journal.

http://money.cnn.com/news/newsfeeds/articles/djf500/200807241703DOWJONESDJONLINE000879_FORTUNE5.htm