NEW YORK (Reuters) - Short sellers targeting shares of a group of U.S. regional banks, including New York Community Bancorp (NYSE:NYCB), were up about $1.04 billion in paper profits over the last two sessions, according to data and analytics company Ortex.
New York Community Bancorp (NASDAQ:CTBI), down about 40% since Tuesday's close of trading after announcing a surprise loss and a 70% divided cut, accounted for about $122 million of those gains.
Short sellers aim to profit by selling borrowed shares and buying them back later at a lower price.
About 3.6% of New York Community Bancorp's free float is sold short, according to Ortex data, little changed over the last two days and slightly below the 3-month average of 4.18%.
During last year's regional banking crisis short sellers targeted shares of banks including First Republic Bank (OTC:FRCB), Silicon Valley Bank and Signature Bank (OTC:SBNY), possibly exacerbating share price declines.