Reported 4 months ago
Short seller Hindenburg Research disclosed a short position in digital bank Axos Financial, leading to a 7.4% drop in shares. Hindenburg cited lax underwriting standards and issues with the loan portfolio, highlighting the bank's exposure to risky asset classes like commercial real estate. Axos Financial defended itself, stating that the report was misleading and incomplete, and emphasized its cautious approach to loan-to-value ratios in the multifamily sector. The bank, ranked as the tenth-most shorted regional bank, has faced scrutiny over its lending practices and borrowers including former U.S. President Donald Trump.
Source: YAHOO