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Give public bailed-out banks shares says Nick Clegg | |
(about 3 hours later) | |
Proposals to give the public shares in part-nationalised banks RBS and Lloyds have been backed by Nick Clegg. | Proposals to give the public shares in part-nationalised banks RBS and Lloyds have been backed by Nick Clegg. |
The idea is that individual taxpayers would benefit from any long-term gains when shares in the banks are sold. | The idea is that individual taxpayers would benefit from any long-term gains when shares in the banks are sold. |
The deputy prime minister said it was important British people were not overlooked after their money was used to keep the banking system alive. | The deputy prime minister said it was important British people were not overlooked after their money was used to keep the banking system alive. |
The Treasury said all options would be considered but some experts have warned the scheme would be difficult to run. | The Treasury said all options would be considered but some experts have warned the scheme would be difficult to run. |
'Life-support machine' | 'Life-support machine' |
Speaking on a trip to Brazil, Mr Clegg said: "Psychologically it is immensely important that the British people feel they have not just been overlooked and ignored. | Speaking on a trip to Brazil, Mr Clegg said: "Psychologically it is immensely important that the British people feel they have not just been overlooked and ignored. |
"Their money has been used to the tune of billions to keep the British banking system on a life-support machine and they have absolutely no say at all in what happens when normality is restored. | "Their money has been used to the tune of billions to keep the British banking system on a life-support machine and they have absolutely no say at all in what happens when normality is restored. |
"I think, in a sense, as a society we are condemned to take an interest in our banking system." | "I think, in a sense, as a society we are condemned to take an interest in our banking system." |
He added: "You are giving the Treasury an assurance that they will break even but you are not giving the Treasury the freedom to grab the windfall if there is one. | He added: "You are giving the Treasury an assurance that they will break even but you are not giving the Treasury the freedom to grab the windfall if there is one. |
"This is something I have discussed a lot with [Business Secretary] Vince [Cable]. Vince and I feel it is something that we want officials to look at." | "This is something I have discussed a lot with [Business Secretary] Vince [Cable]. Vince and I feel it is something that we want officials to look at." |
Liberal Democrat leader Mr Clegg admitted there remained "a huge amount of detail still to be worked on". | Liberal Democrat leader Mr Clegg admitted there remained "a huge amount of detail still to be worked on". |
Minimum price | Minimum price |
The idea for so-called people's shareholdings, first suggested in March, was developed by City firm Portman Capital with the support of the Lib Dems' Treasury Parliamentary Committee, chaired by backbencher Stephen Williams. | The idea for so-called people's shareholdings, first suggested in March, was developed by City firm Portman Capital with the support of the Lib Dems' Treasury Parliamentary Committee, chaired by backbencher Stephen Williams. |
Mr Clegg has written to Chancellor George Osborne in support of the proposal. | Mr Clegg has written to Chancellor George Osborne in support of the proposal. |
Under the plan, the 45 million people on the electoral roll would be given free shares in the bailed-out banks, Royal Bank of Scotland and Lloyds Banking Group. | Under the plan, the 45 million people on the electoral roll would be given free shares in the bailed-out banks, Royal Bank of Scotland and Lloyds Banking Group. |
The shares would only have any value above a "floor price", equivalent to what the government paid for the holdings, so the Treasury could cover the cost of its investment. | The shares would only have any value above a "floor price", equivalent to what the government paid for the holdings, so the Treasury could cover the cost of its investment. |
That price is estimated at 74p per share for Lloyds and 51p for RBS. | That price is estimated at 74p per share for Lloyds and 51p for RBS. |
A Treasury spokesman said: "While the question hasn't arisen at the moment, we've said we shall look at all options". | A Treasury spokesman said: "While the question hasn't arisen at the moment, we've said we shall look at all options". |
The taxpayer owns 83% of RBS and 41% of Lloyds after the government invested about £65.8bn in 2008 at the height of the banking crisis. | The taxpayer owns 83% of RBS and 41% of Lloyds after the government invested about £65.8bn in 2008 at the height of the banking crisis. |