Market movements

Banks and market watchdogs are laying a lot of the blame for volatility in regional bank stocks on short sellers. But if regional banks and regulators want to get even, all they have to do is stay strong.

The economic fallout from COVID-19 has highlighted systemic concerns about commercial real estate exposure, business debt and short-term wholesale funding, the Financial Stability Oversight Council said in an annual report.

Wall Street and its allies in the House are trying to kill the Consolidated Audit Trail, a supercomputer that will allow regulators to detect market abuses, punish wrongdoers and better understand why markets sometimes crash.

Andrew Lo straps sensors to traders and watches how their pulses and body temperatures change when markets dive or trades go bad. The technology could be used elsewhere in a bank to address problems before they escalate.