#AceFinanceReport – Post Update:June.18: Today the CEO of the banking group praises this Tory government for selling them back the group, not just one bank.
According to the article in LONDON (Reuters) – Lloyds Banking Group Chief Executive Antonio Horta-Osorio said a return of the company to full private ownership was “within sight” and praised a plan that allowed the government to sell shares in the open market.
The government has reduced its stake in the bank, bailed out during the 2007-9 financial crisis, to 18 percent from 43 percent. The rate of its sell-down accelerated this year after Morgan Stanley was mandated to sell shares through a trading plan known as a “dribble-out”.
“I personally think that the dribble-out was a really smart thing to do because it enabled the government to sell without any concerns about inside information,” Horta-Osorio told the British Bankers Association’s (BBA) annual retail conference on Thursday.
“It’s just a blind programme where they sell 15 percent, on average, of daily (trading) volumes and they have increased the number of shares sold at higher prices without discounts,” he said.
Britain spent a combined 66 billion pounds of taxpayers’ money rescuing Lloyds and Royal Bank of Scotland during the crisis and Chancellor George Osborne is keen to sell its shares in the banks as soon as possible.
Ace Worldwide News Group