After the collapse of the Silicon Valley Bank, the US government stepped in and guaranteed customers’ deposits.
(Photo: AP)
Dusseldorf The exit from Silicon Valley Bank (SVB) and the resulting market turmoil is turning into a feast for short sellers. The professional investors, who rely on falling share prices, earned around one billion dollars in the past few days at SVB and the Californian bank First Republic alone.
First Republic shares fell 62 percent on Monday. Since last Wednesday, short sellers have made around half a billion profits with bets on falling bank prices, according to data from the analysis company Ortex. At SVB, short sellers earned $513 million last Thursday alone, according to data from analytics firm S3, when the bank’s stock fell 60 percent.
The previous bankruptcy of the crypto bank Silvergate Capital was also lucrative for short sellers. According to S3, they earned around 300 million dollars here.
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