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Does anyone know anything about short selling rules


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Kramer said something about a memo or press release stating that the SEC would no longer enforce brake rules on short selling that prevent shorters from artificially driving the price of a stock down.

 

1. Is this true and

 

2. If true, how much of an effect has this had on AIGs stock price and liquidity issues?

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I found this these pieces of info. It sounds like the SEC decided to institute such a rule, but decided to let it expire recently. Not sure if anything was there before.

 

http://www.sec.gov/rules/proposed/34-48709.htm

http://www.sec.gov/rules/other/2008/34-58166.pdf

http://www.reuters.com/article/businessNew...927274020080810

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Kramer said something about a memo or press release stating that the SEC would no longer enforce brake rules on short selling that prevent shorters from artificially driving the price of a stock down.

 

1. Is this true and

 

2. If true, how much of an effect has this had on AIGs stock price and liquidity issues?

 

The rules were temporary. Things affecting AIG are fear of being associated with the next big financial that may implode and not result of short sellers (although they do amplify some drops)

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