Osborne to sell RBS stake and incur £7.2bn taxpayer’s loss.
George Osborne is so start selling £32bn state’s stake in Royal Bank of Scotland at loss of £7.2bn if all share s were sold at current prices.
The sale of the state’s RBS stake signals a major move in Uk to normalise its banking system, after the 2008 financial crisis, RBS was the
biggest bank in the world , having completed the biggest takeover, with £2.2trillion balance sheet that was more than UK gross domestic
product. But he collapse made the record for the wrong reasons- the £45bn injected as a rescue package of taxpayer’s money by then
Chancellor Gordon Brown’s Labour government represented biggest ever bank rescue, and its £24bn net loss was the worst in British corporate history.
The £32bn value of the shares on June 5th 2015 is far less than the £45bn RBs 2008 bailout. Mr Osborne wanted to start selling the bank
once the shares rose above the price paid by Gordon Brown of 502p but on 5th June 2015, the shares were trading at 352p.
Mr Osborne argues that overall the taxpayer would make a £14bn profit on its 2008 rescue of RBS. Lloyds Banking Group, Bradford and Bingley
and Northern Rock, when all the taxpayer’s shares are sold.
At least, RBS is consistent in its losses over the last seven years, despite launching a restructure of its investment bank this year.