The Blubber

CNBC says something unusual. "It's a perfect situation... shorts don't have to return your borrow."

See full clip: https://twitter.com/unusual_whales/status/1655316825994035201

U.S. authorities at both the federal and state levels are investigating the possibility of "market manipulation" as a factor in the significant fluctuations in banking stock prices observed in recent days, according to an individual with knowledge of the matter who spoke on Thursday.

This week, shares of regional banks continued to decline following the collapse of First Republic Bank, marking the third failure of a mid-sized U.S. lender in the past two months.

The source, who was not authorized to speak publicly, noted that the heightened volatility and increased short-selling activity in banking stocks have attracted the attention of regulators and officials. This scrutiny comes despite the sector's robust fundamentals and adequate capital levels.

The individual stated, "State and federal regulators and officials are increasingly attentive to the possibility of market manipulation regarding banking equities."

The source emphasized that the fluctuations in share prices did not align with the strong performance of many regional banks in the first quarter, which was characterized by stable deposits, sufficient capital, reduced uninsured deposits, and sound fundamentals.