assignment on financial market and risk management

The following quote from SEC Chairman Christopher Cox was recorded in September 2008:
The Commission is committed to using every weapon in its arsenal to combat market manipulation that threatens investors and capital markets. The emergency order temporarily banning short selling of financial stocks will restore equilibrium to markets. This action, which would not be necessary in a well-functioning market, is temporary in nature and part of the comprehensive set of steps being taken by the Federal Reserve, the Treasury, and the Congress. [Source: SEC press release, 19 September 2008]
Critically evaluate the statement in light of the impact of this initiative on the participants in, and operations of financial markets. You should also analyse the implications of these regulatory measures during the recent financial crisis.
Overall word limit: 1500 words maximum.