Treasury to sell £2.5billion stake in Royal Bank of Scotland

Treasury to sell £2.5billion stake in Royal Bank of Scotland in a bid to end a decade of state ownership

  • Taxpayers stumped up £46billion to stabilise the lender and stop it losing cash
  • They paid £5.02 per share in 2008 but the stock price has continued falling
  • Price of latest sell-off not yet confirmed but reported as likely to be £2.71

A £2.5billion stake of bailed-out Royal Bank of Scotland is being sold in a bid to end a decade of state ownership.

City investors were expected to buy a 7.7 per cent stake from the Treasury last night, triggering a £2billion loss for taxpayers.

It is a major milestone as ministers seek to draw a line under the financial crisis.

A £2.5billion stake of bailed-out Royal Bank of Scotland is being sold in a bid to end a decade of state ownership

The sale takes the state’s stake in NatWest owner RBS down from 70.1 per cent to 62.4 per cent. 

And it is likely to be the start of a sustained sell-off, finally returning the bank to private ownership.

RBS was forced to beg the Treasury for a bailout after an ill-advised takeover of toxic Dutch rival ABN Amro which briefly made it the world’s largest bank. 

RBS was forced to beg the Treasury for a bailout after an ill-advised takeover of toxic Dutch rival ABN Amro

Taxpayers stumped up £46billion to stabilise the lender and stop it running out of cash, in a collapse that would likely have taken the British economy down with it.

Taxpayers paid £5.02 per share in 2008 but the stock price continued falling and has not been close to this level since 2010. 

A price for the latest sell-off has not been released yet but Sky News reported it was likely to be £2.71.

 

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