Reckless Osborne will cost us all

Tory plans to sell off nearly ÂŁ2bn Royal Bank of Scotland shares could cost the taxpayer millions and be a bonus for share speculators.

The shares were bought for 502 pence each to bail out the bank in 2008 during the financial crisis rocking the world’s global finance system.

But plans to dump nearly ÂŁ2bn in shares in a thin trading market this week may well depress the share price lower than its current 340 pence a share. That would create an even bigger windfall for speculators who cashed in on the Royal Mail sell-off when the share soared.

It could not be a worse time for the sale of shares. August is traditionally a month when many active share traders are on holiday, depressing share prices and the number of trades.

Reported losses

Only last week RBS reported losses, having had to set aside nearly ÂŁ1bn for mis-selling and possible fines for rigging prices in the foreign exchange markets.

Unite has warned that the ‘the bank has not yet fully learnt the lessons of the 2008 crash”. The bank is also facing the prospect of legal action from investors, including pensioners and staff, who lost millions when the bank was bailed out in 2008.

Rob MacGregor Unite national officer for finance said, “It is recklessly irresponsible for George Osborne to push ahead with the fire sale of the people’s stake in RBS while the bank has yet to convince customers and staff that it will not return to the bad practices of the past that led to the bail out.

“After handing over so much of our money to the banks, the least we should expect is for our public stake to be used to clean up the industry and end the culture of misconduct that led to the crisis.

“Instead it appears that RBS have become so used to receiving massive fines they’ve taken to accounting for them in advance.

“As long as mis-selling remains and the lessons of 2008 are ignored it is reckless for the chancellor to sell-off the public stake and give up the potential for scrutiny and transparency that should come with it.”