Wachtell, Lipton, Rosen & Katz, a law firm that has represented large corporations such as Twitter in mergers and against hedge fund attacks, week Four said US securities regulators restrict short selling by financial institutions.
In a letter to clients, Wachtell stated that the SEC should implement -Financial institutions are prohibited from short selling on the trading day.
This will allow time for regulators to act and for investors to digest the information, said Edward D. Herlihy, co-chairman and partner at Wachtell Matthew M. Guest wrote in the letter, adding that the attacks by short sellers had nothing to do with fundamental performance and put the U.S. economy at “significant risk.” The law firm did not specify any stocks that were subject to such attacks. Wachtell did not immediately respond to a Reuters request for comment.
