Statement From State Comptroller Thomas P. DiNapoli
on the SEC Halting of Short Selling
“The steep and irrational declines in public equity values warranted the SEC’s temporary step to preserve the long-term health of the financial services industry.
My office has been carefully monitoring the speculative selling that appears to have put downward pressure on the entire stock market.
Yesterday, we joined other institutional investors across the country in similar steps aimed at stabilizing the market. Today’s SEC action helped stabilize the markets even more.
Typically, short selling provides valuable market information and serves as a vital component to the efficient functioning of the financial markets. But these are not typical times. Speculation appeared to be driving our national economy deeper and deeper into decline. Something had to be done. That’s why we acted yesterday, and that’s why the SEC has moved forward today.
The temporary restrictions placed on short-selling are the right moves at the right time to bring stability and rationality back to our equity markets.”