![]()
- Dubai World Debt Gets No State Guarantee: Official
- Dubai Stocks Shed 7%, Abu Dhabi Tumbles 8%
- Regulators Compile Global List of 'Systemic Risk' Banks
- BofA Aims to Clearly Spell Out Credit Card Terms
- What Black Friday Shoppers Spent on – And Where
- Partridge Demand Slump Doesn't Offset '12 Days' Costs
- Dubai's Nakheel Seeks Suspension $5.25 Billion in Bonds
- US Senator Opposes Fed Chief Bernanke Renomination
- A Weak IPO Debut for Las Vegas Sands' Macau Unit
- Tamminen: Copenhagen And Beyond
- Dubai is Harsh Reminder of Prolonged Global Recovery
- Tiger Woods Wants to Protect Family Privacy: Agent
- Portfolio Prep for Next Week: 'Don't Get Crazy'
- U.S. Stocks Fall on Dubai Worries
- Black Friday at Best Buy
- Strategists on Dubai: Avoid 'Rash Moves' Now
- Longer Lines, Fuller Carts This Black Friday
- Dubai Stock Market Fear Has 'Legs': Dennis Gartman
MOST SHARED
- US Shoppers Spent Less Over Black Friday: NRF
- Tiger Woods Wants to Protect Family Privacy: Agent
- Dubai Stocks Shed 7%, Abu Dhabi Tumbles 8%
- South Korea Sees Exports Bouncing, but Risks Remain
- Dubai's Nakheel Seeks Suspension $5.25 Billion in Bonds
- US Senator Opposes Fed Chief Bernanke Renomination
- Dubai is Harsh Reminder of Prolonged Global Recovery
- Sands China Ends 10.2% Lower in Hong Kong Debut
- Japan Won't Intervene to Weaken Yen: Finance Minister
Hedge funds executives have told CNBC that several Wall Street firms are marketing a new hedging product that would allow them to "short" stocks—even those on the banned short sale list.
The new "product" is being pitched to major hedge funds today to gauge their interest—it's unclear if any funds have agreed to implement it.
But the move is controversial: Wall Street firms were behind the SEC's latest move to ban short-selling. Morgan Stanley CEO John Mack told employees that short sellers spreading false rumors tanked the firm's stock last week. Morgan Stanley was later forced to convert itself into a bank.
Citigroup officials have been among those pitching the new shorting technique—which involves the use of derivatives. An official there who spoke on condition on anonymity said the technique is still in the discussion stages, adding that if it is rolled out, it will be used purely for hedging purposes. Hedge funds will not be able to use the technique to create a "net short" position. Rather, the technique will be used to hedge against potential losses from going long on a financial stock on the banned list
The Citigroup official said other firms are pitching similar trades. Spokespeople from the firm had no immediate comment.
Still, hedge fund managers interviewed by CNBC say the move is hypocritcal and easily abused. Some Wall Street firms pitching the idea called it a "loophole" in the SEC's short-selling ban.
It's unclear if the firms rolling out the trade have consulted with the Securities and Exchange Commission.
- These four sectors will be the next to lead the market.
- Zhu Zhu Pets are this year's must-have toy, fetching $40 or more on eBay.
- From the why-didn’t-I-think-of-that file, we present Jason Sadler, a man whose job is wearing T-shirts.
- It may be the most unusual guide to business you'll read.
- Shopping for a gadget hound? The choices can be baffling. Here are a few that should be a hit.
- "The Who" will be the halftime act for Super Bowl XLIV on Feb. 7 in Miami. Is the NFL behind the times?












