Was the Government Right to Sell RBS Shares?

The taxpayer has made a loss on RBS - to the tune of £2.1 billion. Was the goverment right to sell 7.7% of its stake at 271p a share?

Emma Wall 5 June, 2018 | 1:02PM
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Royal Bank of Scotland RBS downgrade bank financial UK equity

The UK government completed its sale of a 7.7% stake in Royal Bank of Scotland (RBS), at a more than £2 billion loss to the UK taxpayer today. The Treasury sold the 925 million RBS shares for £2.51 billion, cutting its holding in the FTSE 100-listed bank from 70.1% to 62.4%.

The shares were sold at a price of 271p each, a significant loss on the average of 502p a share the government paid during its bailout of RBS during the financial crisis of 2008.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
NatWest Group PLC232.00 GBX0.74Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar