RBS sale 'would signal recovery'

Royal Bank of Scotland CEO Stephen Hester
12 April 2012

The sale of the Government's shares in Royal Bank of Scotland (RBS) would be "a symbol of Britain's recovery", its chief executive has suggested.

Stephen Hester made clear he would welcome the move, saying it would help RBS - which is 83% state-owned - and provide a boost to the nation's finances.

The head of Lloyds Banking Group refused to say when the Government's 41% stake in his company should be sold off, but also held out the prospect of a windfall for the Treasury.

The taxpayer was "in the money", Eric Daniels told MPs.

Speaking to the Treasury Select Committee, Mr Hester acknowledged criticism that money invested in banks could be better spent on schools, hospitals and roads.

He denied having discussed the Government's shareholding in RBS - arising from its 2008 bailout - with Chancellor George Osborne.

But he said that sales of the shares would be "a very important positive for both the nation and RBS".

"I think it would be a symbol of Britain's recovery, it would help the public purse, it would be a symbol of RBS's recovery, it would help all sides," he said.

Giving evidence separately to the select committee, Mr Daniels said it was up to the Government when it sold its shareholding in Lloyds.

But asked about the likely price, he said: "The price currently is above the break-even point for the Government, so the taxpayer is in the money."

Create a FREE account to continue reading

eros

Registration is a free and easy way to support our journalism.

Join our community where you can: comment on stories; sign up to newsletters; enter competitions and access content on our app.

Your email address

Must be at least 6 characters, include an upper and lower case character and a number

You must be at least 18 years old to create an account

* Required fields

Already have an account? SIGN IN

By clicking Create Account you confirm that your data has been entered correctly and you have read and agree to our Terms of use , Cookie policy and Privacy policy .

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged in