Hedge Funds Sue SEC Over Short Selling Rules, Underscoring More Combative Stance

Also, FDIC's McKernan floats a way forward on Basel; front-line regulators get an earful from skeptical lawmakers; House panel targets private equity in China report

Hedge funds brought their second lawsuit today against a Gensler-era regulation, seeking to overturn SEC rules on short selling and securities lending. The case, unlike the industry’s earlier challenge to the controversial private funds rule (which was well-telegraphed and filed in about a week), was more of a slow burn. The policies were adopted two mo…