Regional Banks Brace for Turbulence Amidst Investor Warnings.
TL;DR Summary
Short-covering may be the driving force behind Friday's rally in beleaguered regional banks, with the $2.7 billion SPDR S&P Regional Banking ETF (KRE) soaring as much as 6.6%, fueled by a record surge of around 80% in PacWest Bancorp. The rebound follows several days of brutal selling and a surge in bearish positioning in regional banks, with PacWest saying this week that it’s exploring strategic options. The heavy shorting in banks led to some calls this week for short-selling to be restricted, a possibility that the White House batted away on Friday.
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- Current CEO Stuart Sopp says the 'duration bubble' is bursting for banks CNBC Television
- U.S. regional banks poised for a 'short-term bottom' Friday, says Fundstrat's Mark Newton MarketWatch
- Nelson Peltz warns more regional banks will fail unless deposit rules change - FT Seeking Alpha
- Legendary investor Bill Ackman warns America’s regional banks are at risk: ‘At this rate, no regional bank can survive bad news’ Yahoo Finance
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