Don't short us, we'll short you

Hedge funds executives have told CNBC that several Wall Street firms are marketing a new hedging product that would allow them to "short" stocks—even those on the banned short sale list. The new "product" is being pitched to major hedge funds today to gauge their interest—it's unclear if any funds have agreed to implement it. But the move is controversial: Wall Street firms were behind the SEC's latest move to ban short-selling. Citigroup officials have been among those pitching the new shorting technique—which involves the use of derivatives. An official there who spoke on condition on anonymity said the technique is still in the discussion stages, adding that if it is rolled out, it will be used purely for hedging purposes. Hedge funds will not be able to use the technique to create a "net short" position.

Hypocritical SOBs.