ICBA Statement on SEC Pledge to Combat Financial Market Manipulation

“ICBA and the nation’s community bankers commend the Securities and Exchange Commission for monitoring any potential manipulation of the financial markets. To support the continued health and safety of the financial markets, ICBA strongly opposes short selling that is solely designed to manipulate bank stocks and cause harm to otherwise healthy financial institutions. ICBA supports the SEC’s pledge to identify and prosecute misconduct that might threaten investors, capital formation, or the markets more broadly, and it encourages the SEC to utilize the full extent of its powers and resources to halt this harmful activity.

“ICBA reminds consumers that they can bank with confidence at their local community bank because they are relationship lenders that are vested in their local communities and built for longevity, with depositor funds insured by the Federal Deposit Insurance Corp. According to the FDIC’s most recent Quarterly Banking Profile, community banks’ asset quality is favorable and capital ratios are strong.

“ICBA will continue educating the public about the stability of community banks and their time-tested business model, which serves as a source of strength to the banking industry, the financial markets, and local communities nationwide.”