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Public must get share of Lloyds and RBS sell-offs, says Lib Dem MP Public must get share of Lloyds and RBS sell-offs, says Lib Dem MP
(4 months later)
A Liberal Democrat MP has put the party's coalition partners on notice that attempts to sell Royal Bank of Scotland and Lloyds Banking Group through a traditional privatisation could run into resistance.A Liberal Democrat MP has put the party's coalition partners on notice that attempts to sell Royal Bank of Scotland and Lloyds Banking Group through a traditional privatisation could run into resistance.
Amid heightening debate about the future of the two bailed-out banks, Stephen Williams, who was the first Lib Dem MP to lend his support to the distribution of shares to all taxpayers, said: "My Lib Dem colleagues and I will not stand by and watch private investors reap all of the benefits once the banks are taken off taxpayer intensive care. The public must get their share."Amid heightening debate about the future of the two bailed-out banks, Stephen Williams, who was the first Lib Dem MP to lend his support to the distribution of shares to all taxpayers, said: "My Lib Dem colleagues and I will not stand by and watch private investors reap all of the benefits once the banks are taken off taxpayer intensive care. The public must get their share."
He issued his remarks after the Policy Exchange thinktank built on the original idea he supported, which was devised by corporate financiers Portman Capital Partners. The idea involves allowing up to 48m taxpayers to apply for shares in RBS and Lloyds, possibly worth £1,650 per person, which they would pay for later. There would be a sell-off of shares to big City institutions and retail investors alongside the distribution to taxpayers, to raise immediate cash.He issued his remarks after the Policy Exchange thinktank built on the original idea he supported, which was devised by corporate financiers Portman Capital Partners. The idea involves allowing up to 48m taxpayers to apply for shares in RBS and Lloyds, possibly worth £1,650 per person, which they would pay for later. There would be a sell-off of shares to big City institutions and retail investors alongside the distribution to taxpayers, to raise immediate cash.
To signal a disposal of part of the 39% stake in Lloyds or 81% stake in RBS, Chancellor George Osborne may have to decide on whether a sell-off would represent value for money for the taxpayer. UK Financial Investments, which manages the bank stakes for the taxpayer, has regarded break-even on the taxpayer stakes as 502p for RBS and 73.6p for Lloyds. But Policy Exchange produced figures which reduced those prices to 360p for RBS and 51p for Lloyds, by factoring in fees the banks have already paid.To signal a disposal of part of the 39% stake in Lloyds or 81% stake in RBS, Chancellor George Osborne may have to decide on whether a sell-off would represent value for money for the taxpayer. UK Financial Investments, which manages the bank stakes for the taxpayer, has regarded break-even on the taxpayer stakes as 502p for RBS and 73.6p for Lloyds. But Policy Exchange produced figures which reduced those prices to 360p for RBS and 51p for Lloyds, by factoring in fees the banks have already paid.
RBS shares were up 2% at 334p yesterday while Lloyds slipped 1% to 61.5p amid reports that the government could hope to sell off a stake in Lloyds before the end of the year.RBS shares were up 2% at 334p yesterday while Lloyds slipped 1% to 61.5p amid reports that the government could hope to sell off a stake in Lloyds before the end of the year.
Osborne, who could use his Mansion House speech next week to spell out his intention to privatise one or both of the banks, may find a sell-off of Lloyds easier to justify and could favour a 1980s-style privatisation in which shares are sold to the public and big City institutions.Osborne, who could use his Mansion House speech next week to spell out his intention to privatise one or both of the banks, may find a sell-off of Lloyds easier to justify and could favour a 1980s-style privatisation in which shares are sold to the public and big City institutions.
He could also give his response in the Mansion House speech to the report by the parliamentary commission on banking standards. The 10 members of the commission met on Monday afternoon and were due to resume on Tuesday to try to reach agreement on a report expected to recommend a clampdown on City pay and moves to make it easier to jail bankers, and could examine the future structure of RBS.He could also give his response in the Mansion House speech to the report by the parliamentary commission on banking standards. The 10 members of the commission met on Monday afternoon and were due to resume on Tuesday to try to reach agreement on a report expected to recommend a clampdown on City pay and moves to make it easier to jail bankers, and could examine the future structure of RBS.
Williams, who urged Osborne to back his proposal where all members of the public get the chance to participate, said "returning the bailed out banks to the private sector will become a feature of the last years of the coalition".Williams, who urged Osborne to back his proposal where all members of the public get the chance to participate, said "returning the bailed out banks to the private sector will become a feature of the last years of the coalition".
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