American Bankers Association urges SEC to probe short sales, reduce ‘abusive’ trading By Reuters
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© Reuters. FILE PHOTO: The seal of the U.S. Securities and Exchange Commission (SEC) is seen at their headquarters in Washington, D.C., U.S., May 12, 2021. Picture taken May 12, 2021. REUTERS/Andrew Kelly/File Photo
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.”
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© Reuters. FILE PHOTO: The seal of the U.S. Securities and Exchange Commission (SEC) is seen at their headquarters in Washington, D.C., U.S., May 12, 2021. Picture taken May 12, 2021. REUTERS/Andrew Kelly/File Photo
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.”
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