Skip navigation
Short Selling Video Gallery
Charting the Hang Seng Index for the short term, with Ray Barros, CEO of Ray Barros Trading Group.
At viewers' requests, Ray Barros, CEO of Ray Barros Trading Group charts spot gold for the short and medium term, the eu...
Andrew Freris, senior invmt strategist, BNP Paribas Wealth Mgmt says he is telling clients to stick to the short end of ...
“Long-term, to have a moderate savings rate and a stable savings rate is ideal for the economy,” Alan Capper from Pinner...
The Fast Money guys take a look at today's top business stories.

Current DateTime: 01:45:49 04 Jul 2009
LinksList Documentid: 24355697
  • Collection of Michael Jackson

      Earlier this year, Jackson sought to auction his personal items. Although it never came through, here's a look at what was almost sold.

  • Recession-Resistant US Cities

      Some cities have been hit much harder than others during the recession. Here are the metro areas faring the best.

  • How Much For A T-Bone Steak?

      From the cost of a T-bone steak to a monthly phone bill, the price for everyday items can vary dramatically across the country.


Current DateTime: 01:45:49 04 Jul 2009
LinksList Documentid: 24890560
  • Boom, Bust and Blame

      The inside story of the economic crisis that has gripped the entire world.

  • E3: Gaming's Cutting Edge

      North America's premier computer and video game trade show draws tens of thousands of professionals to experience the future of interactive entertainment.

  • The Fall of GM

      A look into the fall of General Motors as the automaker heads toward bankruptcy and an effective nationalization.

Don't Blame Short-Sellers for Bank Crisis: Chanos
By: CNBC.com | 19 Sep 2008 | 10:34 AM ET
Text Size

Short-sellers are being unfairly targeted for the collapse in the financial sector, said Jim Chanos, of Kynikos Associates.

"Short-sellers were not the cause of the recent financial stock declines," Chanos said on CNBC. "The data we have indicates that the aggregate short positions for publicly traded investment banks have been dropping over the course of 2008 and have been dropping since July."

(Jim Chanos speaks out about the SEC's banning of short selling. Click to watch the accompanying video.)

Regulators in the United States and Britain took aim at short sellers by restricting the trades in financials, with the United Kingdom rule even more aggressive than the American one.

That's misguided, said Chanos, who blamed the problems in banker-brokers on a bad business model to which shorts were merely reacting as they should. He said there has been no evidence presented of any collusion on the part of short sellers.

"I think the people were more concerned about the business model of the stand-alone brokers more than anything else," he said. "Buying illiquid, risky assets and funding yourself with overnight deposits seems to be a violation of Financing 101."

Targeting short-sellers could cause long-term damage in the investment world, Chanos added.

"The hedge funds aren't too happy with banks and brokers who feel that they've just thrown us under the bus if you will," he said. "There's going to be some good will that needs to be repaired."

© 2009 CNBC.com
Tools:
Print EmailAdd This share icon


Current DateTime: 01:06:02 04 Jul 2009
LinksList Documentid: 29778428

Current DateTime: 01:01:47 04 Jul 2009
LinksList Documentid: 29779196

Current DateTime: 01:06:02 04 Jul 2009
LinksList Documentid: 29779199

Current DateTime: 01:01:47 04 Jul 2009
LinksList Documentid: 29779198
CNBCCNBC
About CNBC  |  Site Map  |  Privacy Policy  |  Terms of Service  |  Video Reprints  |  Advertise  |  Help  |  Contact
Partners: AOL Money  |  BloggingStocks.com
CNBC is a Division of NBC Universal
  Data is a real-time snapshot *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
Thomson ReutersThomson Reuters