Caging the Shorts

Short-sellers didn’t cause the banking crisis, but regulators are cracking down on them.

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Angered by the recent drubbing of his company’s share price, Morgan Stanley CEO John Mack made a stinging assertion and a solemn vow in September. “Short-sellers are driving our stock down,” Mack wrote in a memo to Morgan Stanley employees. “The management committee and I are taking every step possible to stop this irresponsible action.”

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