London — Britain has sold some of its holding in Royal Bank of Scotland (RBS), the bank it rescued in the 2008 financial crisis, but has taken a loss of more than £2bn on the deal. UK Government Investments sold a 7.7% stake in a placement overnight to institutional investors at 271p a share, which was almost half of what the government paid during its initial and largest capital injection into RBS, which it bailed out for £45.5bn. "This sale represents a significant step in returning RBS to full private ownership and putting the financial crisis behind us," Chancellor of the Exchequer Philip Hammond said. Once one of the largest banks in the world by assets, RBS’s near collapse required Britain’s biggest bailout, leaving the government still holding a large stake nearly a decade later. After the latest sale its holding is 62.4%. Britain’s opposition Labour party criticised the share sale when it was announced late on Monday, saying that taxpayers would lose out and the government s...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.