WASHINGTON (Reuters) – The American Bankers Association on Thursday urged the U.S. Securities and Exchange Commission (SEC) to investigate a spate of significant short sales of publicly traded equities that it said were “disconnected from the underlying financial realities.”
In a letter to SEC Chair Gary Gensler, the lobby group said it had also observed “extensive social media engagement” about the health of various banks that was out of step with general industry conditions.
“We urge the SEC to consider all its existing tools and to take measures to reduce the avenues for abusive trading practices and restore investor confidence,” it said.
“These measures include, at a minimum, a clear message and appropriate enforcement actions against market manipulation and other abusive short selling practices.”
(Reporting by Andrea Shalal; Editing by Shri Navaratnam)
