US hedge fund places record bet against NatWest as it bets on UK bank share price fall amid ongoing financial sector troubles
- Data showed that Marshall Wace took a 0.61 percent short position in NatWest stock
- It was the largest short in NatWest stock reported to the FCA under regulations
A U.S. hedge fund has placed a record bet that NatWest’s shares will plummet as the global banking system comes under further strain.
Records from the city’s regulator, the Financial Conduct Authority, showed that Marshall Wace had taken a 0.61 percent short position in NatWest stock.
It was the largest short in NatWest stock reported to the FCA, under regulations in place since 2012, according to analysis by The Times, which first reported the position.
Bank stocks have been under pressure since a crisis enveloped US lenders including Silicon Valley Bank and European giant Credit Suisse.
Shares of NatWest are down 8 percent since the crisis began about a month ago.
Records from the city’s regulator, the Financial Conduct Authority, showed that Marshall Wace had taken a 0.61 percent short position in NatWest stock
However, markets have been relatively calm since the bailout of Credit Suisse by its Swiss rival UBS.
And analysts think major UK banks – which have been forced to be much more cautious since the 2008 crisis – are largely insulated from the problems.
NatWest remains more than 40 percent taxpayer-owned after it was bailed out during the 2008 financial crisis.
Earlier this month, the Treasury pushed back its plan to sell its stake in the bank by two years to 2025, in response to the recent price drop.