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View Full Version : [UK] Government to own majority of RBS [Royal Bank of Scotland]


edesignuk
Nov 28, 2008, 03:09 AM
The government is to own 57.9% of Royal Bank of Scotland after shareholders bought only a tiny proportion of the new shares being offered by the bank.

The small take-up had been expected as the offer price of 65.5p was about 10p higher than the price at which the shares were trading.

The share issue by RBS, which owns NatWest, was part of the government's plan to recapitalise banks.

The government will pay about 15bn for the majority stake in the bank.

It will also buy 5bn of preference shares in the bank.

Existing shareholders agreed to buy almost 56 million shares, which represents just 0.24% of the new shares on offer, at a cost of 36.7m, making an immediate paper loss of 5.6m.

The gap between the offer price and the current share price also means that taxpayers have made an immediate paper loss of 2.3bn based on Thursday's closing share price. BBC (http://news.bbc.co.uk/1/hi/business/7753845.stm).

:eek: RBS seem to be in half the of the office space in the Square Mile, it's just incredible to think they have such big problems.

A former colleague of mine who went to RBS said he'd visited their head offices in Scotland. It's like a small town, there's a golf course, a Tesco, the whole area might even have it's own postcode.

Lau
Nov 28, 2008, 03:27 AM
They do, and they own loads of other banks and other stuff like Direct Line.


A former colleague of mine who went to RBS said he'd visited their head offices in Scotland. It's like a small town, there's a golf course, a Tesco, the whole area might even have it's own postcode.

It's mad it's out by Edinburgh airport and it's like Bluewater with offices attached. :D It does have it's own postcode, yes.

robbieduncan
Nov 28, 2008, 08:19 AM
So, who actually believes that the government will be able to resist meddling and forcing RBS to act against it's best commercial interests? I predict a lot of pressure to offer mortgages to those who should not receive them, not reposes the houses of those who will never pay and the like. This in turn will make RBS far more difficult to sell on when the time comes shooting a future government in the foot. Nice :(

Blue Velvet
Nov 28, 2008, 08:22 AM
So, who actually believes that the government will be able to resist meddling and forcing RBS to act against it's best commercial interests?

I thought it was 'commercial interests' that got us into this mess in the first place?

robbieduncan
Nov 28, 2008, 08:24 AM
I thought it was 'commercial interests' that got us into this mess in the first place?

It was. But now the government are being very two faced. On one hand they keep says "The banks should go back to the old ways, only lending responsibly". On the other they keep saying "The banks have a duty to lend at cheap rates to keep credit in the system, propping up the housing market and keeping people spending". Which one wins votes?

Blue Velvet
Nov 28, 2008, 08:33 AM
It was. But now the government are being very two faced. On one hand they keep says "The banks should go back to the old ways, only lending responsibly". On the other they keep saying "The banks have a duty to lend at cheap rates to keep credit in the system, propping up the housing market and keeping people spending". Which one wins votes?


When I arrived here in the UK in 1989, many people I knew were salivating about property prices going up, house values were the talk in the pub. This sort of valueless speculation has been going on for over two decades; it's now entrenched as conventional wisdom while UK manufacturing has been gutted.

Unfortunately, this government are in a tough position. Unlike the incoming Obama administration, they don't have the political capital to start talking of sacrifice and tough times.

We've seen the Hillary mashup of 'Downfall'. Here's the real estate version. :D
http://www.youtube.com/watch?v=bNmcf4Y3lGM

edesignuk
Dec 1, 2008, 03:01 AM
RBS offers to delay repossessions

The Royal Bank of Scotland (RBS) has guaranteed not to repossess the properties of customers who fall behind on payments for at least six months.

The bank, which owns NatWest, is Britain's fifth largest mortgage lender with a 7% market share.

The government has bought a 58% stake in RBS as part of its recapitalisation plan for the banking sector.

The announcement will put pressure on the biggest mortgage lender, HBOS, which has also taken taxpayer cash. BBC (http://news.bbc.co.uk/1/hi/business/7757840.stm).