Short Selling Ban Not Working

Financials led the rout on Monday even as more names were added to the list of stocks banned from short-selling.

Investors sent shares of Washington Mutual , Wachovia and Wells Fargo substantially lower despite news that the NYSE has banned short-selling of 30 additional stocks; all of whom have large financial services operations. (These stocks were in addition to those 799 stocks temporarily banned from short-selling that was issued by the Securities and Exchange Commission on Friday.)

“A lot of investors were driven out of the market by the ban,” explains a clearly aggrevated Jon Najarian on Fast Money. “If the government is going to put in a ban on short-selling it needs to be for everyone. Otherwise you pretty much get a rigged game. It makes no sense to me at all!”

Options Action

Jon Najarian is clearly frustrated. But we couldn’t let him go without asking him about options action in the financials. It seems the only stock in the space that’s caught his eye was AIG . “That stock moved higher, spectacularly, for most of the day,” he says. Might be worth keeping an eye on it.

Read More:

> NYSE broadens Short Selling Ban

Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send your e-mail to fastmoney@cnbc.com.

Trader disclosure: On Sept 22, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Pete Najarian Owns (AAPL) And (AAPL) Puts; Pete Najarian Owns (ETFC), (MYL); Pete Najarian Owns (MS) And (MS) Puts; Pete Najarian Owns (RIMM) Call Spread; Pete Najarian Owns (TSO) Call Spread; Pete Najarian Owns (WB) Put Spread; Finerman Owns (GS); Finerman's Firm Owns (RIG), (PDE), (WM), (MO), (MSFT), (SUN), (TSO), (VLO); Finerman's Firm Is Short (VNO), (WFC), (IYR), (IJR), (MDY), (SPY), (IWM), (BBT), (COF); Seymour Owns (AAPL), (COP), (ETFC), (MER), (TSO); Seygem Asset Management Owns (PTR), (EEV); GE Is The Parent Company Of CNBC; Charles Schwab Is A Sponsor Of "Fast Money"

Jon Najarian Owns (JPM) Preferred Shares; Jon Najarian Owns (C) Preferred Shares; Jon Najarian Owns (MER) Preferred Shares

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET

Halftime Report

  • Bill Nygren, Oakmark Fund, explains why Apache, Bank of America and Google will be winners in 2015.

  • Nick Tiller, Sustainable America founder and chairman, tells CNBC's Kate Kelly oil prices are poised for a tradable rally. Tiller likes the Brent ETF and energy sector.

  • Discussing interesting trends contributing to the market's rally into year's end, with the FMHR trader Josh Brown and Dan Greenhaus, BTIG.