George Osborne, the Chancellor of the Exchequer, has confirmed that the Government will sell off its stake in the Royal Bank of Scotland (RBS).
The Government purchased the RBS at 502p per share following the banking crisis and has admitted that it is unlikely to recover the investment which was made. Although a sale could mean a loss of £13 billion on the price paid George Osborne said that a sale now was the right thing to do.
In a speech at the Mansion House in London, the Chancellor said:
“I was not responsible for the bailout of RBS or the price paid then for shares bought by the taxpayer: but I am responsible for getting the best deal now for the taxpayer and doing whatever I can to support the British economy.
There is no doubt that starting to sell the government’s stake in RBS is the right thing to do on both counts”.