Article: Goldman to pay $450,000 over short-selling

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Goldman to pay $450,000 over short-selling

March Gordon

Associated Press, 4 May 2010

Goldman Sachs has agreed to pay $450,000 to settle regulators’ allegations that it violated a rule related to short-selling of stocks in 2008-2009, it was announced Tuesday.

The banking company did not admit or deny wrongdoing in paying the civil penalties in agreements with the Securities and Exchange Commission and the New York Stock Exchange’s regulatory arm.

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Article: SEC and FSA Take Actions Against Short Selling

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SEC and FSA Take Actions Against Short Selling

Cary J. Meer, Christina E. Anzuoni, Manjinder Cacacie, Kay A. Gordon, Mark D. Perlow

K&L Gates, 19 September 2008

On September 17 and 18, 2008, in a series of emergency measures, the Securities and Exchange Commission (“SEC”) adopted two new rules, issued two orders (including a temporary ban on short sales in financial securities), amended Regulation SHO and Rule 10b-18, and announced enforcement initiatives aimed at preventing “naked” short selling and compelling disclosure of short positions. In the view of the SEC, but not of all observers, “naked” short selling and other manipulative trading practices have contributed to the recent turmoil in the markets and sudden declines in securities prices, particularly in the financial sector. “Naked” short selling is the practice of selling a security short without having borrowed the security.

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Article: New SEC Rules Target ‘Naked’ Short-Selling

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New SEC Rules Target ‘Naked’ Short-Selling

Marcy Gordon

Associated Press, 18 September 2008

Federal regulators yesterday took measures aimed at reining in aggressive forms of short-selling that were blamed in part for the demise of Lehman Brothers and that some feared could be used against other vulnerable companies in a turbulent market.

The Securities and Exchange Commission adopted rules it said would provide permanent protections against abusive “naked” short-selling. Unlike the SEC’s temporary emergency ban this summer covering naked short-selling in the stocks of mortgage finance giants Fannie Mae and Freddie Mac and 17 large investment banks, the new rules apply to trading in the broader market.

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Article: SEC’s ban on short-selling Fannie, Freddie ends

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SEC’s ban on short-selling Fannie, Freddie ends

Marcy Gordon

New York Times, 13 August 2008

A government order expires Tuesday that temporarily banned a certain kind of short-selling of the stocks of mortgage finance companies Fannie Mae (FNM) and Freddie Mac (FRE) and 17 large investment banks.

The companies’ shares have stabilized since the ban took effect July 21. The Securities and Exchange Commission says its order helped prevent stock manipulation, and that regulators will be able to analyze data to gauge its effectiveness. But some experts say that may be difficult to determine.

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