Plunge Protection Team Working Overtime
There has been talk that another hedge fund within a US investment bank is on the verge of imploding. Ordinarily, short sellers would be signaling the market where the trouble is. But after the run on Bear Stearns, regulators at the Securities and Exchange Commission opened an investigation into possible "stock manipulation." This adds a new element of risk to selling short the shares of any financial stocks. The SEC does not want these shares to plunge.