Cvb's Short-Sell Shock

Summary


As if the Inland Empire needed another reminder of the state of its fragile commercial real estate market, investors in the region's largest financial institution have been betting against it.

Even in the two years leading up to Ontario-based CVB Financial Corp.'s Aug. 9 filing, which said that the bank's loan practices were being investigated by the Securities and Exchange Commission, the firm was being heavily "shorted," analysts said.

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Extract


Cvb's Short-Sell Shock

That's another way of saying that investors are betting against the bank's recently stellar performance and instead taking a chance that the bank's loans - more than 50 percent of them wrapped up in commercial real estate in hard-hit markets like the Inland Empire - would fail.

In essence, CVB, and its bank, Citizens Business Bank, which grew from a small Chino office in 1974 to what experts say is ...

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