Once again someone in charge — Mary Schapiro of the U.S. Securities and Exchange Commission this time – is going on about how they are making changes in order to “preserve investor confidence.”
As if this were in some way a good thing.
I would feel a whole lot better if instead the SEC were talking about making investors more sceptical.
The SEC on Wednesday moved by a 3-2 vote to place additional limits on short selling of stocks, the practice of betting on a decline in a given stock by borrowing shares, selling them and contracting to buy them back later at what the seller hopes will be a lower price.
The new curb would serve as a so-called circuit breaker for shares that have fallen 10 percent or more in a trading session.
“It is a rule that is designed to preserve investor confidence and promote market efficiency,” said Schapiro, the SEC’s chairman.