And so it can be very much in the interest of bank A to sell-short bank B shares, or buy CDSes on bank B, because they have exposure to bank B. It's the responsible thing to do as a fiduciary, and yet if everyone does it at the same time, it's destabilizing because everyone is selling.
We use cookies to enhance your browsing experience, analyze site traffic, and personalize content. By clicking "Got It!," you consent to our use of cookies.