Paulson & Co made at least 270 mln stg from RBS position - FT

LONDON Jan 26 (Reuters) - U.S. hedge fund Paulson & Co made a profit of at least 270 million pounds ($376.2 million) betting on a fall in the share price of Royal Bank of Scotland (RBS.L) over the past four months, the Financial Times reported.

The newspaper said Paulson, run by billionaire John Paulson, covered its short position in RBS on Friday, according to a regulatory filing, dropping below the 0.25 percent disclosure limit.

Paulson & Co was not immediately available for comment.

British banking stocks slumped last Friday after a ban on hedge funds short-selling banks came to an end. Shares in RBS fell by 13 percent that day.

Short-sellers borrow and sell shares in the hope of buying them back for less and making profits after the price has fallen. (Reporting by Matt Scuffham; editing by Carol Bishopric)