View more on these topics

Govt loses more than £2bn on RBS share sale

RBS-Building-2012-700x450.jpgThe government has lost more than £2bn through the latest RBS share sale.

More than £2.5bn of government-owned RBS shares have been sold as part of returning the bank to private ownership.

The government’s shareholding has been reduced by 7.7 per cent to 62.4 per cent. Through the deal 925 million shares were sold at 271p per share.

However, the BBC reports that share price is almost half the 502p per share that was paid in the government’s bailout of RBS a decade ago at the height of the financial crisis.

Former chancellor of the exchequer George Osborne announced plans to return RBS to private ownership in 2015.

Last October, reports emerged the government was waiting for RBS to clear the air with US authorities before selling down its stake.

RBS reached a settlement with the US Department of Justice over the misselling of financial crisis era mortgage-backed securities in May.

Chancellor Philip Hammond says: “This sale represents a significant step in returning RBS to full private ownership and putting the financial crisis behind us.”

He says: “The government should not be in the business of owning banks. The proceeds of this sale will go towards reducing our national debt – this is the right thing to do for taxpayers as we build an economy that is fit for the future.”

Recommended

RBS-Building-2012-700x450.jpg

RBS agrees to pay $4.9bn to US

Royal Bank of Scotland has agreed to pay the US Department of Justice $4.9bn (£3.6bn), paving the way for the British government to sell more shares in the bank. RBS said the settlement was agreed on Wednesday night and most of the sum is already covered. The prospect of a heavy fine by US authorities […]

RBS-Building-2012-700x450.jpg

RBS working on plans for standalone digital bank

Royal Bank of Scotland is mulling launching a standalone digital bank and has assigned a former top executive to the project, according to reports. Sky News says RBS’s former chief operating officer Mark Bailie is leading the “secret” project and that tens of millions of pounds have been assigned to creating the digital platform. The […]

RBS-Building-2012-700x450.jpg

RBS accused of ‘misleading’ MPs over treatment of small businesses

A Labour MP says Royal Bank of Scotland bosses misled an influential Government committee over how it treated small companies. According to the BBC, Labour’s Treasury spokesman Clive Lewis says he has a full, unredacted copy of a FCA report, which examines the conduct of RBS’s Global Restructuring Group. Lewis says the report states RBS’s […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com