The order, issued last month by the SEC that imposed emergency rules requiring anyone who shorted stocks of 19 financially related companies to have the borrowing of those stocks already completed before the short sale could be executed, will not be renewed, according to NyPo.
However, the SEC, in its role as Big Mother to investors, traders, and, apparently, bankers, will be back.
Big Mama is "working furiously", says NyPo, to unveil a proposal next month that would permanently tighten existing rules for short selling, according to people in talks with the agency.
The key here is "according to people in talks with the agency." These are the "people" who are consulting with the SEC and who will skew the new rules to their advantage, since it has been known that Big Mama is very slow to grasp what game the kids are actually playing.
No doubt, the average investor will be screwed and the sly players will have a new edge that Big Mama will be clueless about for two or three years.
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