Wall Street Was Caught Flat Footed by SEC's Custody Rule. Now Firms Say it May be an Earthquake

Also, Gensler appears to dismiss short-selling ban, while saying he's a fan of mark-to-market accounting

With all that is going on at the SEC, it was bound to happen that one of Chair Gary Gensler’s rules would catch much of the financial industry off guard. That’s now officially the case. Banks, hedge funds and brokers told us they are scrambling to analyze and mount a campaign against the agency’s effort to strengthen the safeguards investment firms have…