New Federal Reserve Rules

The Federal Reserve Board just issued two new rules. The first temporarily exempts bank holding companies from leverage and risk-based capital rules.

"The first interim final rule would provide a temporary limited exception from the Board's leverage and risk-based capital rules for bank holding companies and state member banks."

The second rule allows bank holding companies to do transactions they weren't allowed to do on Friday.

"The second would provide a temporary limited exception from sections 23A and 23B of the Federal Reserve Act, which establish certain restrictions on and requirements for transactions between a bank and its affiliates."

Will the SEC End the Short Sale Party?

I just saw this headline in the Wall Street Journal a few minutes ago:

"WASHINGTON--The Securities and Exchange Commission announced an emergency action aimed at reducing short-selling that targets Wall Street brokerage firms as well as Fannie Mae and Freddie Mac, and will immediately begin considering new rules to extend new requirements to the rest of the market."

Not only will it involve selling short FRE and FNM, but according to the journal, it will also apply to Lehman Brothers (LEH) , Goldman Sachs (GS), Merrill Lynch (MER) and Morgan Stanley (MS).

I tried to find this emergency order on the SEC web site, but could not. Please send a link my way if anyone can find it.