Tories plan to fast-track inquiry to sell state bank stakes
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A Conservative government plans to fast track a competition inquiry into concentration in the UK banking sector, which could lead to the sale of stakes in state owned banks as early as next year.
According to reports, shadow chancellor George Osborne wants to make a quick sale of Lloyds Banking Group and Royal Bank of Scotland in the hope of realising billions of potential profit in 2014-15.
The government’s ordinary shares in both Lloyds and RBS are now worth a combined £35m. Lloyds share price has now reached the point where the Treasury could sell its 41 per cent stake at a profit.
Osborne has suggested a sale of the 70 per cent stake in RBS in 2012. Potential sales are complicated by the Tories commitment into an inquiry oversized banks such as Lloyds following its rescue of HBOS.
It is thought the inquiry could be concluded within nine to 12 months by possibly commissioning a business grandee to write a report on the subject. The full report was expected to take two years.
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Readers' comments (1)
Anonymous | 12 Apr 2010 11:21 am
These sell offs have a long history of being flogged to the City at a discount to their true value. Given what the taxpayer has paid for them, it would be nice for us to make some return on our investment rather than being given back to the city to in time for them to reap the profits...
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