Short The Short Selling Ban?

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As we hinted at yesterday, it looks like the SEC is going to extend the short-selling ban. Of course, this is not without cost, given the wild unpopularity of the measure, and the fact that it badly mangles markets for the likes of bond managers, arbitrageurs of all flavors, bond issuers (particularly of the convertible ilk) and anyone who has an interest in maintaining free markets.
CNBC's Charlie Gasparino (lose that suit, Charlie, the university professor look doesn't make you look smarter at all, really) is telling us that convertible preferred stock will be exempted. Someone apparently pointed out to them that the largest buyers of these instruments depend on hedging with short selling and that it would be harder to raise money with convertible preferred (for instance) at a time when capital is a serious issue.
CNBC is also hinting that it is the Treasury department that's slapping around the SEC on the issue. Color us unsurprised. Hank is a lot more popular than Chris on the playground right now.
Meanwhile, in backwards Third World economies news, Thailand ruled out any interference with short selling in any of its markets.

Short Selling Ban Extension?
[CNBC]
Short-selling ban ruled out [Bangkok Post]
Related: Short Selling Ban Fallout [CNBC]

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