The state could hold stakes in RBS and Lloyds for a decade amid fears that tough ICB reforms could scupper a sale altogether
British taxpayers face the prospect of holding stakes in two of the country’s biggest banks for at least a decade, senior City sources say.
Stiff new regulations, coupled with stringent reforms to the sector proposed by the Independent Commission on Banking (ICB), have killed investor appetite for British bank shares.
Taxpayers are already sitting on paper losses of close to £30 billion on the state’s 83% shareholding in Royal Bank of Scotland and its 41% holding in Lloyds Banking Group.
Two years ago UK Financial Investments (UKFI), the government shareholder body, valued the stakes at £65 billion.
Stiff new regulations, coupled with stringent reforms to the sector proposed by the Independent Commission on Banking (ICB), have killed investor appetite for British bank shares.
Taxpayers are already sitting on paper losses of close to £30 billion on the state’s 83% shareholding in Royal Bank of Scotland and its 41% holding in Lloyds Banking Group.
Two years ago UK Financial Investments (UKFI), the government shareholder body, valued the stakes at £65 billion.
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