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| Version 1 | Version 2 |
|---|---|
| RBS: Government sells £2.1bn of shares in bank | RBS: Government sells £2.1bn of shares in bank |
| (35 minutes later) | |
| The government has begun its sell-off of shares in part-nationalised lender Royal Bank of Scotland, raising £2.1bn, a third below the price it paid. | |
| It sold 630 million shares, or a 5.4% stake in the bank, at 330p each, a 7.6p discount on Monday's closing price. | |
| The sale cuts the government's stake in RBS to 72.9% from 78.3%. | The sale cuts the government's stake in RBS to 72.9% from 78.3%. |
| Chancellor George Osborne is facing criticism for selling the shares at a loss compared with the price of about 500p the government paid for them. | Chancellor George Osborne is facing criticism for selling the shares at a loss compared with the price of about 500p the government paid for them. |
| The 170p difference represents a loss of about £1.07bn on the shares sold. | The 170p difference represents a loss of about £1.07bn on the shares sold. |
| 'Simpler and fairer' | 'Simpler and fairer' |
| The UK bailed out RBS in 2008 and 2009 by buying shares for £45bn and supplying it with cheap funds. | The UK bailed out RBS in 2008 and 2009 by buying shares for £45bn and supplying it with cheap funds. |
| Ian Gordon, a banking analyst at Investec, told the BBC's Today programme: "The taxpayer is being short-changed." | Ian Gordon, a banking analyst at Investec, told the BBC's Today programme: "The taxpayer is being short-changed." |
| The shares could have been sold for a higher price in February, when they were changing hands for more than 400p, he said. | The shares could have been sold for a higher price in February, when they were changing hands for more than 400p, he said. |
| However, James Bevan, chief investment officer at money manager CCLA Investment Management, said the loss was "relatively small". | However, James Bevan, chief investment officer at money manager CCLA Investment Management, said the loss was "relatively small". |
| The point of the UK's rescue of the bank was to prevent further damage to the economy, rather than to turn a profit on the shares, he told BBC Radio 5 live. | The point of the UK's rescue of the bank was to prevent further damage to the economy, rather than to turn a profit on the shares, he told BBC Radio 5 live. |
| RBS chief executive Ross McEwan said: "I'm pleased the government has started to sell down its stake. | RBS chief executive Ross McEwan said: "I'm pleased the government has started to sell down its stake. |
| "It's an important moment and reflects the progress we are making to become a stronger, simpler and fairer bank. There is more work to be done but we're determined to build a bank the country can be proud of." | "It's an important moment and reflects the progress we are making to become a stronger, simpler and fairer bank. There is more work to be done but we're determined to build a bank the country can be proud of." |
| 'Casual' loss | |
| RBS reported a half-year loss of £153m last week after setting aside more money for repaying customers and potential legal settlements. | RBS reported a half-year loss of £153m last week after setting aside more money for repaying customers and potential legal settlements. |
| However, for the three months to the end of June, the bank posted a profit of £293m. | However, for the three months to the end of June, the bank posted a profit of £293m. |
| Harriett Baldwin, economic secretary to the Treasury, said Mr Osborne was following Bank of England Governor Mark Carneys' advice that a sale should now commence. | |
| Mr Carney said in June the phased sell-off "would promote financial stability" and benefit the wider economy. | |
| UK Financial Investments, the company through which the Treasury owns shares in banks like RBS, "has taken the view that there is a window of opportunity to start this process," she told the Today programme. | |
| But Barbara Keeley, the shadow treasury minister, accused the government of "casually" losing £1bn. | |
| "The most important question for the tax-payer - are we getting good value for our money? This used to be something the Chancellor used to care about, he said he would only sell these RBS shares when we get good value - clearly that's not now," she told Today. | |
| What is your reaction to the selling off of RBS shares? You can share your comments by emailing haveyoursay@bbc.co.uk. | What is your reaction to the selling off of RBS shares? You can share your comments by emailing haveyoursay@bbc.co.uk. |
| Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways: | Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways: |