RBS sell off

@Northwest It's connected. The British state bought a huge slice of RBS as part of that process.

@Burnley123 Assuming they bought that slice when RBS tanked, in Jan of 2009, if they sold now, they would still be making roughly a 250% return, even though RBS lost some 10% over the past couple of weeks.

What am I missing?

@Northwest RBS was bought to save the economy from tanking so the government at the time effectively paid its pre-crash value because it was kind of like QE through nationalisation and was not about acquiring an asset. It was no asset.

The company has contracted since then but the Government has still sold a stake below the market value because they are committed to privatisation.

@Northwest because British MP's will have shares and options tied in also watch how many get directorships when they their Parliamentary terms finish, I wouldn't be surprised to see Mandelson in there somewhere as well

@Brenda In the US, it's more customary to bring your daughter and son-in-law in, on these things :-)

Can British lawmakers get away with having shares/options?

@Burnley123 I understand privatization, but if they have to sell below market price, it means that RBS has some fundamental issues. Did the sell-off precipitate the stock price drop? I would imagine that, if RBS is doing OK, they would have been able to find institutional investors, to buy large blocks, rather than releasing shares into the public stream, which will definitely depress share prices.

I guess I should read up more, but who has the time with the reality show running on our screens :-)

@Northwest well they are supposed to declare them I think but there are 4 major government contractors who get work from which ever government is in power at the time G4S made a complete mess of the security contract during the London Olympics, but won awards to run numerous Prisons, Sedoxo have made a mess of running some private prison's along with Serco and are now being handed the British Probation service too run as a reward, The Construction company that went bust last year with numerous payments from contracts won from the British Government with numerous former MP's as Directors nothing mentioned about them,
Tony Blair as Prime minster supposedly kicking out illegal immigrants while his wife was acting as Barrister claiming Legal aid to defend them, Now amongst the Richest people in Britain the list goes on and on

@Northwest It's the ongoing litigation that's been causing continuing losses. That bit should have been hived off to a busted bank owned by the executives who prepetrated the debacle.

@Brenda well put as like May saying she will work for everybody but in reality her husband works for a firm that helps the elite aviode paying taxes.

@Northwest Pirvatisation is only good if proceders and laws are put it to protect the people and not just for the shareholders to take all the money and let the system fail> just look how privatisation is set up in the UK, the trains all privatised so shareholders take all the money, the trains have less carrages, dont run as often and prices are a lot higher but if theirs any delays or no trains the customer claims from the companies who then can claim from the goverment!!!!! why ???

look at Heathrow the need runway will be done by a private company but if it goes wrong or delays the government pays for it!!!!! why??