You answered your own question, yes it is both. Also it might spook some trading investors as FRE is at risk of a total loss to common stock holders just as CIT was. Risk by association. But mainly the market and financials. They tend to move together. Also it will attract more traders tomorrow.
Don't misunderstand, I am still long on FRE, but I am playing both sides now as I expect huge increased volatility in the price this week, and just wanted share my thoughts.
For some it would or will be a buying opportunity. For others, if I am right they will know what is happening ahead of time, and maybe not get as spooked as they would other wise.
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