Lawmakers urge SEC to crack down on "naked" short selling
A bipartisan group of U.S. senators said the Securities and Exchange Commission needs to consider additional restrictions to curb "naked" short selling. For example, traders might be required to preborrow, or borrow shares before they attempt to short-sell the stock. "Unless the SEC can develop an appropriate alternative, a strict preborrow requirement may be the only way to adequately protect shareholders' rights," said Sen. Chuck Grassley, R-Iowa.
White House to detail regulatory overhaul June 17
The Obama administration plans to explain its proposal to reform financial regulation June 17, a source said. The plan is expected to be a blueprint for Congress as lawmakers try to restructure oversight of financial institutions and securities. On June 18, U.S. Treasury Secretary Timothy Geithner will testify before a House panel about the proposal, the source said. Lawmakers and the administration are striving to pass regulatory reform legislation by the end of the year.
SEC looks into claim of improper use of Lehman research
The U.S. Securities and Exchange Commission is investigating whether Lehman Brothers employees and others misused stock research, according to a letter made public by a senator. Edward Parmigiani, a former Lehman research analyst, raised the allegation involving information about impending upgrades and downgrades of shares.