The UK government can’t wait to get out of Royal Bank of Scotland and Lloyds, it seems.
The new Conservative government is reportedly considering speeding up the sale of shares in both banks, Reuters reports, even if it means selling RBS shares at a loss.
The government was forced to bail out both banks at the height of the financial crisis in 2008 and 2009. The combined cost to the taxpayer was £66 billion ($US101.77 billion).
The government has since sold around half of its 41% stake in Lloyds but has yet to sell any RBS shares and still owns 80% of the bank. RBS shares have sunk below the price at which government injected cash in, leaving it with a loss of around £13.5 billion (£20.82 billion) on paper.
Despite the poor share performance chancellor George Osborne is said to be warming to the idea of cutting the Government’s losses and getting out of the bank. He will reportedly launch an independent review within weeks into the idea of a share sale.