Hedge fund nets £90m from RBS shorting

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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...

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