‘Ask David’: Tories consider dodging banks sell-off
By politics.co.uk staff
A Conservative government could sell its stake in Lloyds and Royal Bank of Scotland to the public rather than on the open market, it has been reported.
Plans reported today bear a strong resemblance to the 1980s ‘Ask Sid’ privatisations of BT and British Gas, in which Margaret Thatcher dodged selling shares to the open market.
City bankers raised the idea to shadow chancellor George Osborne, according to the Financial Times. It is not yet clear whether Mr Osborne prefers this over other options.
At present the Treasury holds its shares at arm’s length through UK Financial Investments as it seeks to achieve best value for the taxpayer. It holds over 70 per cent of RBS and 43 per cent of Lloyds Banking.
Shares in Lloyds were at 104.05p this morning, significantly higher than the lows in March of 31.32p. RBS shares are selling at 55p – up from a January low of 10p but still depressed.
