Arab Today, arab today british government to begin sale of rbs stake
Last Updated : GMT 15:58:06
Arab Today, arab today
Arab Today, arab today

British government to begin sale of RBS stake

Arab Today, arab today

Arab Today, arab today British government to begin sale of RBS stake

The British government announces
London - AFP

The British government announced Wednesday it would begin selling its Royal Bank of Scotland stake, even though its share price is below what it paid to rescue the bank in a record 2008 bailout.

In an annual address to the London financial community, Chancellor George Osborne said the government would begin selling its 80 percent stake in RBS, which it rescued with public money at a cost of £45.5 billion ($70.6 billion, 62 billion euros).

"In the coming months we will begin to sell our stake in RBS," Osborne told the audience at Mansion House, the residence of the mayor of London.

"Yes, we may get a lower price than (then-ruling party) Labour paid for it. But the longer we wait, the higher the price the whole economy will pay."

The government paid roughly 500 pence a share in its bailout, but shares were worth just 354.8 pence at the close of trading on the London Stock Exchange on Wednesday.

Osborne cited a report by investment banking company Rothschild, which recommended the sale go ahead and predicted that once some shares were sold, the market value of the government's remaining stake would rise.

"They say that beginning sales now, and increasing the free float, will improve the marketability of our remaining stake," Osborne said.

Osborne said RBS shares would be sold to institutional investors first, with members of the public hopefully able to "take part in due course".

A potential taxpayer loss of £7.2 billion on RBS, if all shares were sold at their June 5 price, would be offset by proceeds from other sales such as from fellow bailed-out bank Lloyds, the Treasury said in a statement.

In all, the taxpayer would recover a total of £14 billion more than what had been paid to rescue the banks during the financial crisis, it added.

Lloyds Banking Group was also rescued with public money during the crisis, and the government has gradually sold the 40 percent stake to under 19 percent, with plans to accelerate sales in the coming months.

But RBS has faced headwinds since its bailout.

It was hit with a record fine from a regulator last year over an IT meltdown, and posted a loss in April due to restructuring costs and litigation over its involvement in the United States sub-prime mortgage market.

Chief executive Ross McEwan is overseeing a reduction of RBS's investment bank activities and a substantial cut-back on operations outside Britain.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today british government to begin sale of rbs stake Arab Today, arab today british government to begin sale of rbs stake

 



Arab Today, arab today
Arab Today, arab today Nohan Seyam designs beautiful accessories

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Top Yemen commander killed

GMT 09:55 2017 Wednesday ,22 February

Top Yemen commander killed
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Janat pleased for issuing 'Good Morning'

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 05:15 2017 Tuesday ,21 February

Omega 3 can reduce asthma cases

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 16:08 2017 Wednesday ,15 February

Shawsh reveals her collection "Jewelry of dreams"
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday