Royal Bank of Scotland sinks after government sell-off

By
0 mins. to read
Royal Bank of Scotland sinks after government sell-off
Jevanto Productions / Shutterstock.com

Shares in Royal Bank of Scotland (LON:RBS) dropped by 3.63% to 270.70p, as at 1130 BST, after the UK government announced it had sold a 7.7% stake in the bank for 271p a share. This price represents a loss of almost 50% from what the government injected into the bank to bail it out in 2008 as restructuring and fines for misconduct, including a £3.6 billion fee levied by US regulators last month, have hindered the company’s recovery.

Get the latest from Master Investor directly in your inbox – Sign-up HERE for FREE

Michael Hewson, chief market analyst at CMC Markets said that any share sale was going to be controversial, but that the loss also had to be measured against the economic costs of allowing the bank to fail.

Comments (0)

Leave a Reply

Your email address will not be published. Required fields are marked *

YOUR FREE INVESTMENT MAG

Get real investment insights from some of the best minds in the business - with our free Master Investor Magazine.