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Short Squeeze

New SEC chairman Bill Donaldson is accelerating the agency's investigation of hedge funds, making tighter regulation all but certain. How far will he go?

It's not easy being a financial market regulator. In the three years since the biggest speculative bubble in history exploded, a litany of nefarious practices that helped pump it up has steadily, painfully come to light. Tainted stock research. Fraudulent accounting. Boardroom bosses treating public companies like private piggy banks.

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