Wachtell Lipton asks SEC to crack down on short selling of bank stocks

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A new sign of panic in the US banking industry: Law firm Wachtell Lipton calls on SEC to crack down on short selling of bank stocks.

Influential law firm Wachtell Lipton says the SEC needs to respond by stopping bets against bank stocks in the form of short sales.On Thursday, the law firm Wachtell Lipton sent a memo to clients asking the Securities and Exchange Commission to crack down on the short selling of bank stocks.

Wachtell Lipton is one of the leading US law firms, and its memos are widely read. It specializes in representing companies, often against hedge funds and other investors who try to influential management or bring about strategy changes in other ways. Calls for limits on short selling can be seen as a sign of stress in the financial system. The last time theThe country needs a prompt, tailored response by the SEC to coordinated short attacks that are putting our economy at great risk. In recent trading sessions, the short strategy consisting of"pile-on and wait" has targeted safe and sound regional and community banks and shaken the market's confidence.

 

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