from FIN Alternatives:
Kynikos Associates’ James Chanos, the head of the Coalition of Private Investment Companies, blasted the proposed rules as “ill-concieved.”
“In recent years, short-sellers have publicly warned the marketplace about the dangers at AIG, Lehman Brothers, and Enron, as well as sounding the alarm over the credit ratings agencies, non-bank subprime lenders, and credit insurers,” he said. “Proposals to inhibit short-selling have the effect of limiting this vital market-based antidote to corporate fraud and speculative bubbles, and must be carefully weighed against the clear harm that comes from ill-conceived government intervention in basic market functions.”
