This was of course after bankers risked all on sub-prime mortgage market in the USA. Now the time has come to sell-off the stake. As with Lloyds and TSB banks. Of course the institutional investors will get lions share. These are amongst the ones that helped put us in the global crisis in the first place, including Wall Street bankers.
Anyway this time it will be a loss to the taxpayer of £14-billion. This of course is a drop in the ocean said one investment CEO today to the BBC almost justifying grand larceny under the guise of good business.
Today this was Reuters take by two writers on our chancellors deficit credentials, see what you think and let me know?
LONDON (Reuters) – Chancellor George Osborne will seek to burnish his deficit-cutting credentials on Wednesday, fresh from a decisive Conservative victory in last month’s election, by reinforcing a long-term commitment to run budget surpluses.
Osborne will draft legislation to compel future governments to spend less than they raise in taxes during normal economic times — something that very few governments in British postwar economic history have managed — according to extracts of a speech that he will give to London’s finance industry.
Osborne is also expected to give details on how the government will sell its 80 percent stake in Royal Bank of Scotland.
Bank of England Governor Mark Carney, who is also speaking at the annual Mansion House dinner, is due to announce tougher regulation for financial markets, which have been rocked by a string of scandals.
“In the budget, we will bring forward this strong new fiscal framework to entrench this permanent commitment to that surplus, and the budget responsibility it represents,” Osborne is due to say in the speech.
Next month, Osborne will announce updated borrowing and growth forecasts in his first post-election budget statement.
#AceFinanceNews – Featured Report:BRITAIN:June.10: Despite a spate of record fines of bankers rigging international rates, miss-selling people insurance policies and bagging huge bonuses, UK Chancellor George Osborne is set to use his annual Mansion House event in the City of London to keep his friends happy.
The Times reports that there will be a chance for EU treaty changes in 2019 as well as a smaller tidying up exercise in 2017 #Brexit
Against the growing lack of trust in the City, Osborne is set to keep his banking friends sweet. The theme of the chancellor’s speech is the need for a new settlement with the EU, with the City, and in the way the public finances are managed.
Moving into surplus: a look at what govt plans to eliminate Budget deficit by 2018-19 might mean for public spending http://t.co/jEr7zG6agT
Having won electoral success in May, the Conservative government is keen to use its majority to press on with traditional Tory financial policies, which often means fawning to its City backers and friends.
The annual Mansion House speech is given by the chancellor to black-tied bankers, the City elite and other grandees – many of whom are Conservative Party donors. Osborne himself has an estimated personal fortune of around $6 million, as the beneficiary of a trust fund that owns a 15 percent stake in Osborne & Little, the wallpaper-and-fabrics company co-founded by his father, Sir Peter Osborne.
BRITAIN: Osborne Set to sell-off RBS & the loss to taxpayers this time – around £14-billion – Reports ‘ https://t.co/IsmtHCP9Cb
However, the City has been rocked in recent years by rows over huge bankers’ bonuses, despite the global economic crash caused by toxic debt flying around and the credit crunch. In the UK the taxpayer had to bail out both Lloyds and RBS in 2008 in order to keep them afloat.
The government also had to support Northern Rock and Northern Rock (Asset Management), as well as Bradford & Bingley. The total support package for the ban bailout during 2008-9, according to the National Audit Office, came to an eye-watering $1.85 trillion.
Bonuses and Record Fines
Not content with having had to bail out the bankers, taxpayers have been angered at their bonuses. This year it was reported that bankers were set to be awarded $7.7 billion in bonuses. Bailed bank RBS handed over $770 million, and Lloyds paid $580.
In the latest scandal, London-based HSBC is being investigated in several countries for operating a secret bank in Switzerland used by rich people and companies to avoid tax in other states in an ‘aggravated money laundering’ operation.
Meanwhile record fines have been handed over by banks who admitted rigging international rate systems. In 2012, Barclays Bank was fined $200 million by the Commodity Futures Trading Commission, $160 million by the United States Department of Justice and £59.5 million by the UK Financial Services Authority for attempted manipulation of the Libor and Euribor rates.
All eyes will be on whether George Osborne cuts the bank levy, which has been used to swell the government coffers by taking a charge on the financial sector. Stuart Gulliver, chief executive of HSBC, will be listening very carefully, having threatened to move his headquarters out of London and move back to Hong Kong.
Osborne, however, is unlikely to do anything that will upset his City mates too much. He has too much to lose.