The U.S. Securities and Exchange Commission this morning
issued a temporary ban to prohibit short selling in financial
companies. Although it immediately came under attack, the move
was a bid to strengthen investor confidence in the market and
follows a similar action taken by the U.K.'s Financial Services
Authority on Thursday.
The step, along with the government's pledge this morning to
shore up the financial system, led to a big surge in the shares
of many embattled financial companies, including Morgan Stanley
and Goldman Sachs. Short-sellers scrambled to cover their
positions during a triple-witching day, when stock...