Short Sellers Reaped Nearly $400M in a Day From the Bank Stock Rout Ryan Hogg - Markets Insider Short sellers made nearly $400 million in the space of a day betting against regional banks including PacWest Bancorp and Western Alliance Bancorp, a report says. Reuters reported that investors shorting the regional banks, which also included First Horizon Corp., took in $378.9 million during Thursday's trading session, citing data from ORTEX, a financial analytics platform monitoring short interest. /jlne.ws/3HJvOVo
nice! I should have sat on my hands, and would have made $11K, instead of $1600 (I thought I was smart).
Unlike the meme stocks of 2020, the KRE members are doomed since this crisis in confidence can only be ebbed by politicians extending FDIC insurance limits. That is very unlikely given the state of politics in the US. The most shocking collapse has to be PacWest. One day they claim in the post earnings conference all is well and deposits are rising and 2 weeks later they are looking for "strategic alternatives." Cramer on Bubblevision says to ban short selling on all bank stocks. Another trader turned socialist.
The establishment fears the power of the organized crowd... They fear that the crowd brings this corrupt system to its knees... Related news 'ordered by The System': "US officials are looking into possible market manipulation of regional bank stocks" "Short Sellers Flocking to US Banks Are Risking a Painful Squeeze" See also: https://en.wikipedia.org/wiki/Short_squeeze
banning short selling works for companies like banks because bear raids are enough to take them out. The problem banks will fail anyway But they won’t take out solvent banks with them. The banking crisis is tricky. The fed need only backstop deposits to protect the economy. They can screw over the equity holders and no one will care. The problem is that the only place for these deposits to go is JPM, C, BAC, and WFC and that becomes a problem And there’s no real solution for that.
PACW today before market open had such a high rise of +35%: But it all was just a useless effort by the goberment or who ever as it all eroded, current numbers: I think this bank, and maybe also WAL, will fall to zero
All of what you said is correct. The problem I have is in the good times these people are capitalists and in the bad times they want price discovery to disappear just like in September 2008. If all it takes is a few short sellers to destroy your business it should not be publicly traded.
I agree with your frustration on the hypocrisy. I think banks have proven again and again that there is not enough regulation for that industry. I also agree that the only large businesses that can go bankrupt overnight seem to be hedgefunds and banks.