Hedge fund bets nearly £1bn against UK banks

The FSA’s short-selling ban has forced Paulson to disclose large positions in RBS, Lloyds TSB, Barclays and HBOS. Paulson’s $35bn hedge fund, which amassed stellar returns betting against sub-prime mortgages last year, was one of only a handful of vehicles to retain short positions past Friday's deadline. The Paulson & Co fund disclosed four UK bank shorts: 1.76% in Lloyds TSB 1.18% in Barclays 0.95% in HBOS 0.87% in Royal Bank of Scotland It is estimated the combined bets are worth in excess of £900m. In a statement released last night, Paulson & Co says it “empathise...