Investment Banking

Bank stock volatility probed for potential market manipulation

Biden administration to monitor short-selling pressures on healthy banks

State and federal authorities are looking into the possibility of market manipulation behind recent volatility in bank stocks, according to a 5 May report.

Reuters reported that the wild stock swings and increased short-selling activity for banks that have solid fundamentals, including sufficient capital, have drawn the attention of state and federal officials and regulators, who are assessing potential market manipulation.

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