RBS: UK Government Announces Shares Sell Off
June 11, 2015 9:43 amVideo
Latest News
- Overview of the GBP/USD pair. April 16th. The pound may rebound, but the flat is over, and there are no reasons for growth April 16, 2024
- Trading plan for GBP/USD on April 16. Simple tips for beginners April 16, 2024
- Trading plan for EUR/USD on April 16. Simple tips for beginners April 16, 2024
- Overview of the EUR/USD pair. April 16th. In plain text: The ECB will cut rates in June April 16, 2024
- Forecast for EUR/USD on April 16, 2024 April 16, 2024
- Forecast for GBP/USD on April 16, 2024 April 16, 2024
- Forecast for AUD/USD on April 16, 2024 April 16, 2024
- Outlook for GBP/USD on April 16. Pound awaits inflation data April 16, 2024
- Outlook for EUR/USD on April 16. Another boring Monday April 16, 2024
- The euro hardly has a chance to rise April 16, 2024
- Trading Signals for GOLD (XAU/USD) for April 15-17, 2024: buy above $2,328 (200 EMA – 5/8 Murray) April 15, 2024
- Video market update for April 15, 2024 April 15, 2024
- Trading Signals for GBP/USD for April 15-17, 2024: buy above 1.2450 (21 SMA – 0/8 Murray) April 15, 2024
- The dollar has not reached its potential April 15, 2024
- Analysis of GBP/USD. April 15th. Retail sales in the USA allow the dollar to continue rising April 15, 2024
- China’s Q1 GDP growth next on the Asian calendar – Preview April 15, 2024
- Technical Analysis – Goldman Sachs stock gains on strong earnings April 15, 2024
- Trading Signals for ETH/USD (Ethereum) for April 15-17, 2024: buy above $3,125 (200 EMA – 2/8 Murray) April 15, 2024
- Analysis for EUR/USD on April 15th. Monday – a tough day for the euro April 15, 2024
- GBP/USD: trading plan for the US session on April 15th (analysis of morning deals) April 15, 2024
The chancellor George Osbourne this morning announced plans to begin the sell off of troubled part state owned bank RBS (RBS.L). The UK government provided RBS with a £45.5bn bailout in 2008 taking an 80% stake in the company.
Plans announced this morning for a phased sell off of the governments holding have sparked criticism by Unite the workers union whos members also include bank workers saying the sell off will “short change the public”. Currently the share price of RBS (RBS.L) is around 355p where as the UK government stake was bought at 500p per share.
Although George Osborne countered these claims saying that the sale must be seen as a whole and that a better price would be gained in subsequent share sales as confidence grows. Commenting the chancellor said ”It’s the right thing to do for British businesses and British taxpayers. Yes, we may get a lower price than that was paid for it – but we will get the best price possible. For the longer we wait, the higher the price the whole economy will pay.”
The Chancellor is trying to reassure the public that they will not be short changed and is pinning his hopes on the fact that he thinks the bank will do better when not under state ownership and will eventually make higher profits and pay more tax and support the economy more than it would with the state owning 80%.
The Sell off will take place over the next five years and even if the share price did not move at all during this time the treasury would still receive £32Bln and taking into account the sale of bank assets and fees already received a review by investment bank Rothschild Investments states the taxpayer would still receive £14Bln more than the cost of the bailout.
RBS (RBS.L) share price is trading slightly higher this morning off the back of the news at 360p (+2%).
Related Posts: