Banking group asks SEC to stop short-seller attacks on the industry

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Banks ask SEC to stop short-seller attacks on their stocks driven by social-media speculation

"Since the two bank failures in March, some of our members have experienced significant short sales of their publicly traded equity securities that do not appear to reflect the issuers' financial status or general industry conditions," ABA's CEO Rob Nichols wrote.

betting against PacWest, Western Alliance and First Horizon, according to ORTEX data reported by Reuters. Each of the banks' shares fell around 40% on the day. "ABA is, however, unalterably opposed to short selling practices that distort the markets through manipulation and abuse," he said.

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