{"id":34561,"date":"2023-05-04T16:39:45","date_gmt":"2023-05-04T16:39:45","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/short-sellers-reap-378-9\/"},"modified":"2023-05-04T17:02:46","modified_gmt":"2023-05-04T17:02:46","slug":"short-sellers-reap-378-9","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/short-sellers-reap-378-9\/","title":{"rendered":"Short sellers reap $378.9 million from losses in PacWest, two other bank stocks &#8211; Ortex"},"content":{"rendered":"<p>(Reuters) &#8211;     Short sellers made $378.9 million in paper profits betting against regional banks First Horizon Corp, PacWest Bancorp and Western Alliance Bancorp in Thursday&#8217;s session, analytics firm Ortex said.<\/p>\n<p>Since the start of 2023, bearish investors have made\u00a0$816 million from the three stocks alone, according to Ortex.<\/p>\n<p>Shares of regional banks resumed their slide this week after the collapse of First Republic Bank &#8211; the third U.S. mid-sized lender to fail in two months &#8211; fueled fears there was more pain ahead for the sector.<\/p>\n<p>PacWest Bancorp dove 57% on Thursday, dragging down other regional lenders, after the Los Angeles-based bank said it was in talks about strategic options.<\/p>\n<p>Shares of First Horizon Corp slumped nearly 40% after its $13.4 billion takeover by Toronto-Dominion Bank Group was mutually called off because there was no clarity on when they would get regulatory approvals.<\/p>\n<p>Western Alliance Bancorp denied a report from the Financial Times that said it was exploring a potential sale. The report had sent the lender&#8217;s shares down as much as 61.5% before trading was halted.      <\/p>\n<p>Over the first two days of May, short sellers made $1.2 billion from declines in stocks of U.S. regional lenders, according to Ortex.<\/p>\n<p>The U.S. Securities and Exchange Commission is &#8220;not currently contemplating&#8221; a short-selling ban, an agency official told Reuters on Wednesday, as worries over bank soundness hit share prices.    <\/p>\n<p>Short sellers typically sell borrowed securities and aim to buy these back at a lower price to pocket the difference. <\/p>\n<p \/>\n<p> (Reporting by Medha Singh in Bengaluru; Editing by Devika Syamnath)<\/p>\n<p><a href=\"http:\/\/lynettelockhart.com\/client\/short-sellers-reap-378-9\/a-general-view-of-pacific-western-bank-in-huntington-beach-3\/\"><img decoding=\"async\" src=\"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ430PX-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ430PX-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Reuters) &#8211; Short sellers made $378.9 million in paper profits betting against regional banks First Horizon Corp, PacWest Bancorp and Western Alliance Bancorp in Thursday&#8217;s session, analytics firm Ortex said. Since the start of 2023, bearish investors have made\u00a0$816 million from the three stocks alone, according to Ortex. Shares of regional banks resumed their slide [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":34562,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[],"class_list":["post-34561","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ430PX-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/34561","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=34561"}],"version-history":[{"count":1,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/34561\/revisions"}],"predecessor-version":[{"id":34563,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/34561\/revisions\/34563"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/34562"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=34561"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=34561"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=34561"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}