socialize_me
11-20-2008, 04:05 PM
Nov. 20 (Bloomberg) -- Citigroup Inc., which fell as much as 25 percent in New York trading today, is urging the Securities and Exchange Commission to revive a prohibition on short-selling financial stocks, according to a person familiar with the matter.
The bank has also discussed with lawmakers its proposal to reinstitute the ban on bets that share prices will fall, said the person, who declined to be identified because the discussions weren't public. Citigroup, down for eight of the past nine trading days, declined $1.22 to $5.18 on the New York Stock Exchange at 2:37 p.m.
Buffeted by four straight quarterly losses, New York-based Citigroup has raised about $75 billion since December by selling assets and equity stakes, including a $25 billion injection from the U.S. Treasury.
SEC spokesman John Nester declined to comment. Citigroup spokesman Michael Hanretta didn't return a phone call seeking comment.
The short-sale ban lapsed Oct. 8. The SEC instituted the prohibition in September after Morgan Stanley Chief Executive Officer John Mack and lawmakers such as New York Senator Hillary Clinton blamed short sales for driving companies to the brink of collapse.
Hedge funds opposed the restriction, arguing that poor management and an over-concentration in mortgage securities were to blame for declines in share prices of financial companies.
To contact the reporter on this story: Jesse Westbrook in Washington at jwestbrook1@bloomberg.net.
Hillary is a cunt.
The bank has also discussed with lawmakers its proposal to reinstitute the ban on bets that share prices will fall, said the person, who declined to be identified because the discussions weren't public. Citigroup, down for eight of the past nine trading days, declined $1.22 to $5.18 on the New York Stock Exchange at 2:37 p.m.
Buffeted by four straight quarterly losses, New York-based Citigroup has raised about $75 billion since December by selling assets and equity stakes, including a $25 billion injection from the U.S. Treasury.
SEC spokesman John Nester declined to comment. Citigroup spokesman Michael Hanretta didn't return a phone call seeking comment.
The short-sale ban lapsed Oct. 8. The SEC instituted the prohibition in September after Morgan Stanley Chief Executive Officer John Mack and lawmakers such as New York Senator Hillary Clinton blamed short sales for driving companies to the brink of collapse.
Hedge funds opposed the restriction, arguing that poor management and an over-concentration in mortgage securities were to blame for declines in share prices of financial companies.
To contact the reporter on this story: Jesse Westbrook in Washington at jwestbrook1@bloomberg.net.
Hillary is a cunt.