Prominent Law Firm Calls for Crackdown on Short Selling of Bank Stocks

Shares of regional banks have plunged this week in response to concerns over the banking crisis
The prominent law firm Wachtell Lipton sent a memo to clients asking the SEC to restrict short selling of bank stocks
Short selling allows investors to bet against stocks and profit when share prices fall
Wachtell Lipton's request shows the level of stress in the financial system as bank stocks come under pressure
While some criticize short selling, others argue it helps prevent overvaluations and challenges hype