RBS Anxious for Government to Sell Shares Gained in Bailout

RBS hopes Government will release stock shares beginning in 2011.

RBS hopes Government will release stock shares beginning in 2011.

The Royal Bank of Scotland (RBS) is anxious to complete the necessary requirements to allow the Government to sell its 83 per cent stake in the bank.

Chief Executive Stephen Hester said the bank will be selling assets to exit all sectors, including the Dutch Bank ABN Amro.  Hester has admitted the purchase by RBS was a mistake.

The release of assets has been a requirement of the European Commission as a result of the state aid the bank received as a bail out from the Government.

RBS recently completed the sale of Sempra Commodities to US Investment Bank Group, JP Morgan, and is in negotiations to sell its Spanish Bank holding Santander to a different investor.

The Government is not expected to sell all of its shares at once since this could allow an unwelcomed take over of RBS.  In addition, the shares need to be sold in such a manner and at the point to hopefully bring a gain in from the sell of the shares on behalf of the taxpayers.

Hester has admitted he would like to see the Government releasing shares by 2011.

Comments & Debate

  1. October 28, 2010 at 11:08 pm Phaily Commented:

    over a period, RBS should buy back the shares from the Government

Leave your comment

  • (not published)