Utah Governor Signs Law Against „Naked Short Selling” of Stocks

Utah Governor Jon Huntsman signed SB 3004, sponsored by Sen. Curtis Bramble, which cracks down on a stock speculation strategy called “naked short selling.”  Short sellers borrow stock hoping the share price declines so they can return it to brokers and pocket the difference. Naked short selling is where brokers send IOUs they can’t honor through a stock clearinghouse when they run out of shares to lend for short selling. Wall Street firms strongly oppose the new law and have vowed to sue.