Add Robert Griefeld to the list of folks who say restrictions on short selling — such as the short selling ban in financials last autumn — are totally pointless.
Though he is in the camp that thinks naked shorting is a problem, his review of the data suggests that there was no positive effect on stock prices from the move, Griefeld told Congress.
The SEC is currently weighing short-selling regulations (most likely an uptick rule) and faces considerable pressure from politicians and entertainers like Jim Cramer, who has his own 5000-fan strong petition in favour of an uptick rule.
But really, there’s no support to the idea that short-selling bans or uptick rules make a difference. The best argument you can come up with is that it serves no point and does no harm so there’s reason not to do it. Not a great reason to disrupt the functional flow of markets.
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