Short-selling on UK banks misfires

As regulators attempt to place more controls on short positions, analysis shows interest in UK banks is on the wane

Analysis by DataExplorers into UK banks’ shares being borrowed by short-sellers since November 26 shows long/short funds have largely mis-timed short positions. This comes as US regulators last month curbed the practice, and the Committee of European Securities Regulators last week recommended mandatory public disclosure of sizeable short positions. But as John Paulson, the most successful manager publicly to report shorts in UK banks during the crunch, found out when he faced headlines saying he reaped about $1.2bn, short-selling hacks the public off. Especially when it is directed a...