British govt to begin sale of RBS stake

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, reports AFP from London.
In an annual address to the London financial community, Chancellor George Osborne said the government would begin selling its 80 per cent 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.

British govt to begin sale of RBS stake

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, reports AFP from London. In an annual address to the London financial community, Chancellor George Osborne said the government would begin selling its 80 per cent 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 governments remaining stake would rise.