GE Expected to Be Added to SEC's No-Short List
General Electricis expected to be added to a list of financial stocks that can no longer be sold short, according to people familiar with the situation.
The Securities and Exchange Commission Friday temporarily banned short-selling on 799 financial stocks to boost investor confidence on Friday, one day after the UK Financial Services Authority took a similar step.
GE , the parent of CNBC and CNBC.com, makes about half its profit from its financial services unit, GE Capital.
Other companies with large financial services interests such as CIT also are petitioning the SEC to be added to the initial list of stocks released Friday morning.
The SEC’s emergency order is in effect at this morning and will remain in effect until 11:59 p.m. New York time on Oct. 2, 2008, the Commission said in a statement.
The order may be extended beyond 10 days if the SEC deems an extension necessary in the public interest and for the protection of investors, but the order will not be extended for more than 30 calendar days in total duration, the agency said.
The measure ignited big rallies in financial stocks Friday that have been the target by sellers as the credit crisis worsened.