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...