The Securities and Exchange Commission’s ban on short-selling about 1,000 stocks was extended last night. It was originally set to expire at midnight to night but the extension has given it a lease on life until three days after a rescue plan is passed by Congress of October 17th, which ever comes first.
Most hedge funds oppose the ban and its requirement that they disclose short positions to the SEC, something many believe could compromise their investment strategies by making them available to the public. Oddly enough, Phillip Goldstein, the guy who runs the Bulldog Investors hedge fund, supports the ban. Goldstein sued the SEC in a case which saw the federal courts overturn a requirement that hedge funds register with the agency.
Here’s the New York Post’s report on Goldstein:
Goldstein said he has no thoughts of fighting the agency now. “I am confident our regulators at the SEC have a good handle on things,” he told The Post in an e-mail. “[It’s] nice that the SEC is propping up stocks in these stressful times. That is their mission, right?”