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Clegg calls for public to be given bank shares

Deputy Prime Minister Nick Clegg has called for the public to be given shares in both Lloyds and RBS.

Clegg says the Government should give voters the benefit of any long-term gains made when shares in the part-nationalised banks are sold.

The taxpayer owns 83 per cent of RBS and 41 per cent of Lloyds after the Government invested £65.8bn at the height of the banking crisis in 2008.

Clegg has written to Chancellor George Osborne to offer his support for the proposal.

Speaking on a trip to Brazil, Clegg said it was important to remember it was taxpayers’ money used to keep the banking system afloat.

He said: “I think, in a sense, as a society we are condemned to take an interest in our banking system.”

He added: “You are giving the Treasury an assurance that they will break even but you are not giving the Treasury the freedom to grab the windfall if there is one.”

The 45 million people on the electoral roll would be given free shares in the bailed-out banks as part of the plan.

The plan was first suggested in March with a host of Liberal Democrat MPs backing a proposal developed by City firm Portman Capital.

Clegg admitted a huge amount of detail needed to be worked on to make the plan work.

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Comments

There are 9 comments at the moment, we would love to hear your opinion too.

  1. Dennis Burling ACII APFS, Chartered Finalcial Plan 23rd June 2011 at 9:57 am

    Well, at last some sense from government, they know that the banks will be a lost cause for a long time and are probably going to be a cash drain so why not float off the loss making asset for hard cash now when its needed and let the future losses be taken by the general public (mugs)directly – makes perfect sense for them, certainly not for the punters who buy them however.

    I certainly won’t be parting with any of my hard earned cash into this. If they are free of course then well thats different, a quick sale will then bring in some well needed cash !

  2. Is there a pennies worth of sense in the Liberal Party?

    Please define the population who will receive the free issue shares.

    Will they include immigrants with free legal aid and truck loads of instant human rights, or new born babies or the English,Scots, Welsh and Irish?

    Will the families of foriegn workers be included to support. i.e. I come from XYZ and have 120 children there?

    Will the cost of distribution be assertained, as well
    as the distribution effect after say 6 months.

    Finally what will be the cost/charge against profits of supporting the additional shareholder at A.G.M’s etc.

    God has given the British the worse plagues, politicans without leadership and the E.U

  3. A really really stupid idea.

    If it went ahead how much would each receive?

    £5 quids worth, £50 quid?, £100?

    45 million on the Roll will probably equate to one 50p share each.

    Most would sell straight away. Remember all those privatisation “Sids”? Not many of them left is there!

    Also, agree with M J above. If this silly idea does go ahead then shares to tax payers only but knowing the Liberal and Labour something for nothing benefits culture this will be very unlikely.

    Better to sell these Banks as a whole and pay of some of the deficit. Paying off the deficit, theres a novel idea that really would help tax payers!

  4. The money will come in handy – it’ll help pay for my son’s university tuition fees.

    I’m always happy to take a blatant political bribe, I’m still not going to vote Lib Dem though.

  5. I don’t this as a positive. The whole point about proping up the banks by buying shares is so that the Treasury can sell them back “at a profit” once the bank’s share prices allows them to do so. We as individuals didn’t fork out our personal cash in any of this, why are we being told we now need to be given cash on the back of it?

    The shares should be kept until the Treasury can sell them at a profit, and use that profit to either, lower the deficit, invest in schools etc and/or give taxpayers a windfall.

    The fact that “taxpayers” paid for the shares via the treasury, but all “voters” are proposed to get shares doesn’t sit right either – suggesting that families who don’t work and who’s only income is benefits (i.e. taxpayers money) should get shares on the back of this is laughable!

    Scrap the idea, Treasury use the profit to prop up the UK Plc coffers, end of!

  6. Keith Davidson 23rd June 2011 at 2:00 pm

    This has to be the most stupid idea I’ve ever heard from politicians and I’ve a heard a few. Are they seriously thinking about bunging the tax payer a few billion quid when we are in deficit and implementing cuts.

    Yes the taxpayer owns these shares and yes, the taxpayer should benefit if a profit arises. But we should benefit through the public purse when the funds are ultimately distributed through democratic process.

    This plan is madness. Scrap it immediately.

  7. Calm down every one. IFA’s are the scourge of the earth and not part of the “Big Society”
    We will not be included in any hand outs. We are always selected for special treatment.

  8. I already hold shares but I have not been receiving the dividends. Hopefully if this scheme goes ahead then I will or am I just whistling in the wind?

  9. Being foreigner living in London the last 5 years having paid app. GBP 300,000 in income taxes and lots in stamp duties, council taxes, I am surprised that it is not the taxpayer which is the audience for this. They say the banks were saved by the tax payers, hence the stocks should go back to them. At the same time they should be offered to people in the electorial roll. people like me who keep this shithole afloat are not in the electrial roll, despite having paid more taxes in 5 years then the majority do in a lifetime. Hence its an idiotic idea.

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