Article written by Chris Prentice, via https://www.reuters.com on 10 May 2023

NEW YORK, May 10 – Federal prosecutors in Washington are looking into short seller activity around the recent volatility in U.S. bank shares sparked by the failure of three regional lenders since March, a source familiar with the matter said.
Short sellers arrange to borrow shares they consider overvalued and sell them in the hopes that if the price drops they can repurchase them for less and pocket the difference.
Critics say short sellers hurt companies, but short sellers and advocates say they act as an important check on public firms.
Since at least 2021, the Justice Department and the SEC have been investigating potential manipulation by short sellers and hedge funds around the publication of negative research reports.

Please check out the complete article (source in English): https://www.reuters.com/business/finance/us-prosecutors-look-short-selling-bank-shares-source-2023-05-10/?utm_source=www.execsum.co&utm_medium=newsletter&utm_campaign=microsoft-x-activision-is-back-probably

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