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, traders that profit by betting shares will fall, have come under scrutiny over the past week as government efforts to steady the sector have faltered and investor fears over the health of regional lenders have deepened.
Source: U.S. prosecutors look at short selling in bank shares – source | Reuters