SVB Fallout
Short Sellers Scored $2 Billion Profit as Regional Banks Plunged
- Data from S3 Partners shows billions in paper profits
- Halted shares of SVB, Signature leave some short bets in limbo
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In the span of just three days, short sellers minted more than $2 billion in paper profits as the collapse of Silicon Valley Bank set off a cascade of selling across the stocks of regional lenders.
The precise amount of the mark-to-market gains came to $2.29 billion from Thursday to Monday, according to data compiled by S3 Partners. It was a frenetic stretch that saw the SPDR S&P Regional Banking ETF (KRE) — which includes SVB Financial Group — plunge the most since 2020.