CFOs Want to End Short Selling

Eighty percent of CFOs felt increased regulation and oversight are need to mend the financial crisis at hand. Over a third of the CFOs surveyed want permanent restrictions placed on short selling of all companies. According to a recent survey of CFOs conducted by Financial Executives International, respondents also called for increased regulation of hedge funds and credit default swaps, as well as a reinstitution of mortgage lending standards.

Close to 70 percent of the nearly 300 CFOs interview said they anticipate access to credit will continue to become more restrictive over the next six months, according to FinancialWeek.

Our survey shows a continued, increasing loss of confidence by these CFOs, and for the first time in several years, they are actually reporting year-over-year reductions in capital investments, technology spending and hiring,” said John Elliott, dean of the Zicklin School of Business at Baruch College, which produces the survey with FEI.

Most CFOs expect the Federal Reserve to raise rates to 1.62 percent by April 2009 and move up to two percent next October. The Fed funds rate stood at two percent when the survey was conducted, since then the Fed has cut it to one percent.

“On average, CFOs responses to the third-quarter survey agreed with many of the recent economic actions taken by the government,” said Cheryl de Mesa Graziano, vice president of research and operations at FEI, told FW.