Britain may promote 10 % stake in RBS as quickly as this week – Sky News

LONDON (Reuters) – Britain may promote a 10 % stake in Royal Bank of Scotland as quickly as this week, Sky News reported on Monday, citing banking sources.

FILE PHOTO: Royal Bank of Scotland indicators are seen at a department of the financial institution, in London, Britain December 1, 2017. REUTERS/Peter Nicholls/File Photo

The British government nonetheless holds a 71 % stake within the financial institution after stepping in with a taxpayer bailout through the monetary disaster.

Sky reported that bankers anticipated Britain to announce the disposal of a stake price no less than three billion kilos, however added that any share sale might be delayed by market circumstances or ministers’ considerations about worth for cash for taxpayers.

At Friday’s closing share value of slightly below 290 pence, little greater than half the 502 pence the government paid for them, the Treasury stands to lose billions of kilos on the sale.

The British government pumped 45.5 billion kilos into RBS within the depths of the monetary disaster, and efforts since then to recoup the cash have been stymied by the plunge within the financial institution’s share value, regulatory probes within the United States and Brexit.

In specific, a long-running investigation by the U.S. Department of Justice into the financial institution’s mis-selling of poisonous mortgage-backed securities delayed the share sale.

But RBS agreed a smaller than anticipated $four.9 billion settlement earlier this month, paving the best way for a long-awaited return of money to UK taxpayers.

Britain stated in November it could promote 15 billion kilos of RBS shares over 5 years, with three billion kilos to be offered by the top of the 2018-2019 fiscal yr.

“We don’t comment on market speculation,” a spokesman for the finance ministry stated. A spokesman for RBS declined to touch upon the report

Both RBS and Lloyds have been rescued through the 2007-9 monetary disaster. Britain offered its remaining stake in Lloyds final yr.

Reporting by Alistair Smout; Editing by Jane Merriman and Adrian Croft

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