Short sellers are being blamed for exacerbating the U.S. bank crisis. Investors who bet against First Republic Bank (FRC.N) increased their bets, making it harder for the bank to recover its value. Short interest in First Republic increased as turmoil in the banking sector intensified. The same was observed for Silicon Valley Bank (SVB) (SIVBQ.PK) and Signature Bank (SBNY.PK) which showed a similar pattern of short interest increasing as their stock started to fall. The underlying issues exploded last month when depositor flight spiraled out of control and regional lenders across the board saw their shares hit. Some believe that shorts are market watchdogs, but others think they are opportunistic investors who profit from others’ misery.

Receive the Only Headline Weekly Reporter Newsletter by SMS/Text covering the latest tech, biotech, growth and small cap stocks analysis.

Gregory Timmons

Only Headline Contributor

On the date of publication, Gregory Timmons did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer/contributor. Greg Timmons is not a licensed financial advisor and this should not be construed as investment advice. Please consult your own financial professional.