Friday’s episode of NPR’s “Marketplace” presented an interview with ABA Policy Director Naomi Camper on ABA’s defense before the Securities and Exchange Commission regarding potentially manipulative short-selling activity in the shares of certain banks.

“We’ve been in constant communication with our members, and they’ve shared their concerns with us, including the engagement they’ve seen on social media,” Camper told “Marketplace” correspondent Kimberly Adams. “And many believe that their shares have been manipulated by short sellers. They are seeing trades in their shares that challenge the underlying fundamentals, and they are concerned about that.”

While noting that the current volatility in certain bank stocks is limited to equity markets, Adams said short selling that is disconnected from economic fundamentals “can also scare bank customers, and scared customers can lead to bank runs.” ”. However, he also cited Ipsos polls showing that a vast majority, 78%, of Americans continue to trust their banks.

ABA letter to the SEC Late last week, he acknowledged the role of short selling in generating liquidity and price discovery, but said the damage caused by short selling that goes against fundamentals lies with small investors. Consequently, the association reiterated that it is “unchangeably opposed to short selling practices that distort markets through manipulation and abuse. We urge the SEC to consider all of its existing tools and take action to reduce avenues for abusive business practices and restore investor confidence.”

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