The chancellor has put a March 2019 deadline on selling the Royal Bank of Scotland. If the government sells it’s shares at their current price the taxpayer will have made a £26 Billion loss.
Why you might ask?
Corruption. Sorry, there is no other explanation.
RBS, this year, made half year profits of £939 million despite it’s £396 million legal costs due to it’s mis-selling of mortgages in the run up to the financial crash.
The Royal bank of Scotland has yet to post a profit in the last 9 years, yet now the government might see some returns on their (our) investment, it has decided to sell the shares in the bank. Discarding any future profits that would help the treasury and making a £26 billion loss.
The government acquired it’s 72% stake in a £45.5 billion bailout in 2008. Since then the bank has yet to post a profit, except for the first half of 2017.
This might show how completely incompetent Phillip Hammond is as chancellor, selling a profit making business for a loss. But they did exactly the same with Lloyds. Socialising the losses made by the bank after the financial crisis, but excluding the people from enjoying the fruits of their 2008 ‘investment’ once it became profitable again. We could keep our stakes in these banks and use them to fund public services or lower taxes. The difference is they made a slight gain on the Lloyds purchase, even though they could of increased their profits by keeping the 2nd most profitable bank in the UK in public ownership longer.
But incompetence is probably not the reason Hammond is selling RBS, he did study PPE at Oxford so clearly isn’t stupid. The truth is far worse. Corruption. The now profit making bank that will be sold by the government dirt cheap is a tasty investment for a number of economic elites, many of which contribute to the Conservative party. This is a perfect demonstration of the hypocrisy of big business. When times are good they beat the drum for capitalism and look down on anyone suggesting socialist policy, yet when they deliberately exploit their customers trust and inevitably fail, they rely on tax payer money? It seems once again, they are going to get away with socialising their debts, and at the first glace of profitability excluding the people that saved them from complete devastation.
What other reason would our government have for selling when we will make a huge loss?
To sum up. We’re selling a profit making public institution, making a £26 billion loss on our investment, so some rich people can get richer. It’s a disgrace.
The bank is set to move jobs abroad to Amsterdam after Brexit. We could stop this if we kept our stake.
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