Regulatory Action in The Credit Crunch
The SEC announced on September 17, 2008, strict new rules to prohibit all forms of "naked short selling" as a measure to reduce volatility in turbulent markets.
The SEC investigated into cases involving individuals attempting to manipulate the market by passing false rumors about certain financial institutions. The commission has also investigated into trading irregularities and abusive short selling practices. Hedge fund managers, broker-dealers, and institutional investors were also asked to disclose under oath, certain information pertaining to their positions in credit default swaps. The commission also brought about the largest settlements in the history of the SEC (approximately $51 billion in all) on behalf of investors who purchased auction rate securities from six different financial institutions.
Read more about this topic: U.S. Securities And Exchange Commission
Famous quotes containing the words action and/or credit:
“For the child whose impulsiveness is indulged, who retains his primitive-discharge mechanisms, is not only an ill-behaved child but a child whose intellectual development is slowed down. No matter how well he is endowed intellectually, if direct action and immediate gratification are the guiding principles of his behavior, there will be less incentive to develop the higher mental processes, to reason, to employ the imagination creatively. . . .”
—Selma H. Fraiberg (20th century)
“In a secular age, an authentic miracle must purport to be a hoax, in order to gain credit in the world.”
—Angela Carter (1940–1992)