The recent crisis on both sides of the Atlantic, which has rocked the sector and is the worst since the 2008 crisis, has given interested parties an opportunity to speculate, according to Britain’s Financial Times. Especially, investment funds hedgers have earned over $7 billion betting on bank shares and the biggest gains were made in March, which turned out to be a dark month for financial institutions. During this time and within a few days, the American bank collapsed. Bank of Silicon Valley and the former stronghold was urgently acquired Credit Suisse UBS to prevent its bankruptcy. These events negatively affected the sector in general and the German Deutsche Bank in particular. Due to the sharp fall in the share price, the German chancellor himself Olaf Soltz was forced to brush aside concerns about its sustainability, while the American average First Republicbased in California was rescued by larger competitors.

Those brokers (short sellers) who take stock and sell them, hoping to buy them back at a lower price, has reported an estimated total profit of around $1.3 billion, betting on the survival of a U.S. Silicon Valley bank, according to data analysis by Ortex. In addition, $848 million in profits came from betting against First Republic, whose shares fell 89% in March. And in the case of troubled Swiss banking group Credit Suisse, investors made $684 million as a severe crisis of confidence plaguing it sent its shares down 71%, according to related data. Short selling profits across the US and European banking sector totaled $7.2 billion.

“March was the most profitable month since the 2008 crisis for those who borrowed shares and sold them, hoping to buy cheaper,” Ortex co-founder Peter Hillerberg told the Financial Times. And while bank stocks also plummeted in early 2020 at the start of the coronavirus pandemic, fewer investment funds were betting against them to hurt their profitability, he added. Additionally, Barry Norris, Chief Investment Officer at Argonaut Capital, said March was an impressive month thanks to stock market betting against banks such as Credit Suisse and First Republic. Investment funds under the Argonaut Absolute Return brand returned 6% or more. London-based Marshall Wace, one of the world’s largest hedge fund groups, was also among those betting, one of which was a 0.7% cut in Deutsche Bank shares. These funds ended up making about $40 million in betting profits against the German financial group, according to the Financial Times.