Floyd Norris gets out his calculator this morning and crunches some numbers on short-selling and stock performance during the now-expired period when the SEC banned naked shorting of 19 financial stocks.
As you might expect, there aren’t any obvious conclusions. The stocks rose over the period in question — but then again financial stocks which weren’t on the list rose more. Short interest in the SEC-named companies declined, even as it rose among their competitors — but then again "the range of the changes in short position was very wide among both groups".
My feeling is that the SEC’s action was more of an insurance policy than it was an attempt to drive stock prices up or short interest down. As it happens, there wasn’t any kind of attempted bank run during the period when naked shorting was banned — which is quite possibly exactly the result that the SEC wanted. There probably wouldn’t have been one anyway, of course, but the SEC might just have wanted to play things as safe as possible in an environment where there was a very real risk that shareholders in Fannie and Freddie could be wiped out.
Still, with any luck we won’t see the return of this rule any time soon. The misinterpretations alone should be reason enough not to start changing the architecture of the capital markets in the middle of a crisis. I hope that the SEC will take the data from this experiment, sit on it, crunch it umpteen different ways, and eventually come out with recommendations and a request for feedback. So long as there’s no indication the SEC is panicking, we’ll probably be OK.
Buy latest shoes and sneakers from the top fashion designers shoes in china, cheap discount
prada shops and stores. Wonderful Prada shoes collection: Prada
from our nike shoes online store, get free shipping ! get
and nike shox ! Shopping is the best place to comparison shop for
Compare products, compare prices, read reviews and merchant ratings. Compare prices on
in Babies & Kids with bizrate. Buy
from top rated stores. Comparison shopping for the best price. Buy Women
, 40-70% Off. Cheap Nike Women Shox, Free Shipping! Buy
for Women Now! Nike released a new athletic Nike Shox shoe – the
, as part of the … Here is the Nike Shox R4 kids, you can feel the best in the
The latest GHD hair, GHD Straighteners, GHD Hair Straighteners products on sale now.
the uk .