An American hedge fund has placed a record-breaking bet that NatWest shares will plummet as the global banking system comes under further strain.
Data from City regulator the Financial Conduct Authority showed Marshall Wace had taken a 0.61 per cent short position in NatWest shares.
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.
Banking shares have come under pressure since a crisis enveloped US lenders including Silicon Valley Bank and European giant Credit Suisse.
NatWest shares have fallen by 8 per cent since the crisis began around a month ago.
Data from City regulator the Financial Conduct Authority showed Marshall Wace had taken a 0.61 per cent short position in NatWest shares
However, markets have been relatively calm since Credit Suisse’s emergency rescue 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 per cent owned by the taxpayer after it was rescued during the financial crisis in 2008.
Earlier this month, the Treasury pushed back its plan to sell down its holding in the bank by two years, to 2025, in response to the recent share price fall.
