Paulson & Co reaps £270m shorting RBS

[godoftrading]

Paulson & Co, one of the world’s biggest hedge funds, has made a profit of at least £270m betting on a fall in the share price of Royal Bank of Scotland over the past four months. The New York-based fund, run by billionaire John Paulson, covered its “short” position in RBS on Friday, according to a regulatory filing, dropping below the 0.25% disclosure limit. The scale of the profit is likely to renew the debate over short selling, which recently led the UK’s FSA to ban additional shorting of banks for months. The issue is likely to feature in UK parliament on Tuesday when hedge funds testify to the Treasury select committee about the ban.

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