Jefferson City News

On April 9, 2024, Congressmen Blaine Luetkemeyer of Missouri and Bill Foster of Illinois raised concerns about market volatility attributed to short selling in a letter addressed to Chair Gary Gensler of the U.S. Securities and Exchange Commission (SEC).

In the letter, the Congressmen highlighted the importance of short selling in supporting market integrity and accurate price discovery. They acknowledged the impact of false information on stock prices, stating, "However, we are aware of assertions that some issuers have experienced falling stock prices due to market-moving information that was untrue."

The bipartisan letter called on the SEC to investigate the recent market volatility, particularly in relation to short selling and the dissemination of potentially false information through social media. It urged the SEC to monitor, address, and report back to Congress on market manipulation issues.

The Congressmen also requested Chair Gensler to identify the authorities granted to the SEC when short selling coincides with misleading information.

The full text of the letter from Congressmen Luetkemeyer and Foster to Chair Gensler can be accessed for further details.

The concerns raised by the Congressmen stem from the impact of increased market volatility on U.S. companies, especially small, mid-sized, and regional financial institutions. Misleading or false information, often amplified by social media, has posed challenges to market integrity, prompting the call for regulatory scrutiny.

For more information or inquiries, individuals are encouraged to visit Congressman Luetkemeyer's official website or contact his offices in Jefferson City at 573-635-7232 or Cottleville at 636-327-7055.

The letter from Rep. Luetkemeyer and Rep. Foster underscores the ongoing efforts to address market volatility issues attributed to short selling and the dissemination of false information, marking a bipartisan call for regulatory action.