WASHINGTON AP – Federal regulators are expected to extend through mid-August a temporary order banning a certain kind of short-selling of the stocks of mortgage finance companies Fannie Mae, Freddie Mac and 17 large investment banks.
Advocates for smaller banks and investment firms also have been urging the Securities and Exchange Commission to expand the order – scheduled to expire Tuesday – to cover additional financial companies. They contend that smaller companies continue to be targeted by aggressive short-selling. But such action will require a formal proposed rule to be voted on by the SEC commissioners.
