News

Government cuts further stake in Lloyds

The UK Government has sold a further 1% stake in Lloyds Banking Group, reducing its total holdings to 13.99%.

Chancellor George Osborne has said; “it’s fantastic news that we’ve sold more shares in Lloyds bank. I am determined to build on this success and to continue to return Lloyds to the private sector and reduce our national debt” [1].

A Lloyds spokesman said; “today’s announcement shows the further progress made in returning Lloyds Banking Group to full private ownership and enabling the taxpayer to get their money back”.

“This reflects the hard work undertaken over the last four years to transform the Group into a simple low-risk and customer-focused bank that is committed to helping Britain prosper” [2].

There are rising speculations that Government will also starting selling shares in the Royal Bank of Scotland.

The Government have a 79% stake in RBS which received a £45bn taxpayer bailout during the crisis.

Trading shares are always volatile; RBS’s shares have fallen 1.4% in the FTSE 100 since the beginning of the year.

Although Osborne has stated in June that he wanted to sell RBS even though the shares are trading at less than the 502p average price for them. He said profits on selling other bailed-out banks would outweigh the loss on any RBS sale [1].

[1] The Guardian. ‘UK Government further cuts stake in Lloyds’. http://www.theguardian.com
[2] Yahoo. ‘Government sells further 1% stake in Lloyds Banking Group’. https://uk.news.yahoo.com