The Debate Over Short Selling of Bank Stocks Continues.

The SEC's career staffers are advising against implementing a ban on short selling of regional bank stocks, despite calls for such a ban to stem the recent crisis in the regional banking business. Short selling is controversial, with some saying it helps uncover financial frauds while others argue it spreads unfounded rumors and hastens stock declines. The last time the SEC banned short selling was during the 2008 financial crisis, and it actually added more uncertainty to the financial markets. SEC Chairman Gary Gensler may have contributed to the calls for a ban, but he will have to propose it himself and push it through the full five-member commission on a party-line vote.