Close Brothers critic pockets £3m from bet related to car finance scandal
A short seller who claimed Close Brothers would need to pay out more than expected in compensation as part of Britain's car finance scandal has made millions from its bet against the troubled lender.Viceroy Research last month published a report estimating Close Brothers would need to at least double its £300 million provision for payouts. It is understood now to be sitting on a profit of £2.9 million after Close Brothers' stock fell 19 per cent on the day the claims became public.Short sellers make their money by betting that a company's stock price will fall in value. Bet: A short seller who claimed Close Brothers would need to pay out more than expected in compensation as part of Britain's car finance scandal has made millionsClose Brothers' shares were trading at £4.15 before the report and hit a low of £3.21 in the aftermath. They have since bounced back, ending last week at £4.11 after the City watchdog scaled back the estimated total cost of the compensation scheme from £11 billion to £9 billion.But Viceroy is still sitting on a profit, said market sources, estimating it shorted Close Brothers at over £5 a share, a level not seen since February.DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
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Close Brothers critic pockets £3m from bet related to car finance scandal
