Close Brothers Strongly Disagrees With Viceroy Short Report (2)

Close Brothers Group Plc “strongly disagrees” with a report by short-seller Viceroy Research about the amount it’s set aside for motor finance compensation.

The London-listed firm’s shares plunged as much as 18.8% on Monday after Viceroy argued that it could have to double its provisions. Close Brothers previously set aside £300 million ($399 million) to compensate customers who were sold car loans with interest rates pegged to discretionary commissions.

In research published on Monday, however, Viceroy said Close Brothers’ exposure could be between £572 million and £1.07 billion.

“Our provisioning approach in relation to this matter is in accordance with ...