The New York Common Retirement Fund, the most recent addition tothe list, went the furthest, removing 105 million shares in 19banks and lending companies from the pool of available securitiesunder the Fund's Securities Lending Program "so they can't be usedby short sellers."

"The financial services industry has experienced declines inpublic equity values that in some cases are unconnected to thelong-term financial health of the industry," New York StateComptroller Thomas DiNapoli said in a statement. "By removing someof the fuel that is feeding this speculative fire, my action isintended to bring stability and rationality back to our equitymarkets."

A CalSTRS source told GlobeSt.com Thursday that it halted thelending of shares of only Morgan Stanley and Goldman Sachsyesterday at 4:30 p.m. EST. They also informed 60 peers of theiractions, which like CalPERS and NY Common may react morebroadly.

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