The next tranche of the state’s share in Royal Bank of Scotland could be sold this week, with speculation mounting that the Treasury will resume its work in the near future privatisation.
About 10% of the banks can be sold to investors who would like to raise about £3 billion, and yet reveal significant losses for taxpayers after the government was forced to bail out RBS during the financial crisis in 2008.
While long-term Treasury’s goal is to sell its 70.5% stake and return the Bank to the private sector, the stock price may defer a decision.
Profit RBS boss offered some shelter from the shareholders
RBS is currently estimated to be about 12% less than when the then Chancellor, George Osborne sanctioned a controversial sales in 2015, although the government to resign, writing off a large part of the £45.5 billion spent on the bailout, with his remaining stake worth less than £25 billion.
The UK government investments (UKGI), the arms-length company owned by the Treasury, which advises on the management of your assets, declined to comment.
But according to “sky news”, the bankers and investors were primed to expect further sales as soon as this week, the stock Manager at a large institutional investor asserting that the city was “awash with speculation” that an announcement was imminent.
The renewal of the plan of liquidation of the share of the state was back on the table with relatively mild settlement with the U.S. Department of justice earlier this month. RBS agreed to pay $4.9 billion (£3.7 billion) to end an investigation into sales of financial products linked to risky mortgages in the run-up to the financial crisis, less than half in the worst case, the penalty UKGI feared.
Chancellor, Philip Hammond, said that the agreement opened the way for the resumption of sales of the shares are soaring on the news. The office for budget responsibility forecasts the government raise £15 billion from the sale of its share in the next five years.
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RBS will hold its annual General meeting on Wednesday in Edinburgh, based in this year its first annual profit since the crisis, amounting to £752м in 2017, and promising to resume payment of dividends.
However, some shareholders are agitating for control over the Bank and its Executive pay. The anger was caused by a report in the “widespread mistreatment” of small businesses of RBS after the financial crisis, while the Bank recently announced its plans to close 162 branches with the loss of 800 jobs.
RBS declined to comment.