A hedge fund made £90m in just a few days by betting against the price of Royal Bank of Scotland shares, it was revealed today.
US-based Paulson and Co took short positions on the bank, which plummeted in value last week as the UK Government announced it would up its stake in the beleaguered bank to almost 70%. RBS's share price has been battered by a series of losses and a recent announcement that it could make a record full year loss of £28bn. MPs expressed concern last week as bank stocks saw billions wiped from their value, and asked the FSA to review its policy on short-selling. Treasury Committee chairman John McFall wrote to the regulator suggesting the recent lifting of a short-selling ban was having a...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes