A new round of short-sale bans sure to ire the hedge fund industry, but do they work?
| Mar 7th, 2010 | Filed under: Hedge Fund Regulation, Today's Post | By: AAA Staff |
If there is one point of contention that still smarts like a fresh wound in hedge fund managers’ hearts it is the global crackdown among policymakers and attorneys general on short-selling.
As the world financial markets were in free-fall in the fall of 2008, the idea at the time was that, to protect banks and financial firms – whose shares were on a one-way trajectory down – and in turn to stabilize financial markets, it would be good policy to ban short-sellers from continuing to bet against their shares. More…
To continue reading this article please login (at the right) or click here to learn more about accessing our archives.
Related Posts
- Disentangling the effects of the short bans from those of the broader financial crisis
- Will “hedge fund replication” benefit from new short selling bans?
- Short-Ban study finds no evidence of “expected effect of the new regulations”
- Hedge funds not alone in defending short-selling secrecy
- By the way, is there anybody on board who knows how to fly a plane?
