Jump to content

Sign in to follow this  

PAC highly critical of Treasury over bailout of Lloyds & RBS

style="text-align:center;"> Please note that this topic has not had any new posts for the last 2527 days.

If you are trying to post a different story then you should start your own new thread. Posting on this thread is likely to mean that you won't get the help and advice that you need.

If you are trying to post information which is relevant to the story in this thread then please flag it up to the site team and they will allow you to post.

Thank you

Recommended Posts

The Public Accounts Committee (PAC) has warned that the £66 billion paid by taxpayers to bailout Lloyds Banking Group and the Royal Bank of Scotland (RBS) at the height of the financial crisis may never be recovered. In a report published today looking at the Treasury’s handling of the Northern Rock crisis, the PAC, chaired by Margaret Hodge MP, said: "The Treasury was unable to respond promptly when the banking crisis hit because it lacked the right skills and understanding.” She said that overall the rescue of Northern Rock is likely to cost taxpayers £2 billion and that the sale of Northern Rock to Virgin Money had been “fortunate.”


Ms Hodge does not expect the same thing to happen to Lloyds Banking Group or RBS and warned that it could take years for them to be sold. The UK taxpayer currently owns 40 per cent of Lloyds and 82 per cent of RBS. Since the part-nationalisation of these banks, there share price has plummeted meaning that if they were sold now at their current market value, the government and the UK taxpayer would lose billions of pounds. The share price of RBS has improved over the past 12 months, up from a low in January of 175 pence per share, up to 280 now. Meanwhile, Lloyds share price has doubled during the past 12 months from a low of 22.5 pence per share up to today’s figure of 45p.


However, in order to get the taxpayers stake back, the government would have to sell RBS shares at around 500 pence per share and although Lloyds share price has enjoyed a similar rise this year, the shares would have to rise by about 40 per cent from their present level. The PAC report suggests that there is a risk that the £66 billion used to bailout the two banks may never be recovered. In a scathing attack on the Treasury and UK Financial Investments (UKFI), the body that took over the taxpayer interests in RBS and Lloyds, the report said after nationalization the Treasury “failed to effectively challenge the optimistic business plan put forward by the bank's management to split the bank.”


More: http://www.myfinances.co.uk/investments/2012/11/16/pac-highly-critical-of-treasury-over-bailout-of-lloyds-rbs

Some useful links.


Making Posts

Letter Template Library

Bank Contact Details

AQ Guide to Completion

Court Fees

Data Protection non Compliance

Witness Statements for Court Bundle

Banking Code Website

Limitations Act

Fast Track Costs

A-Z Index

Mis-Claim Tutorial

Step By Step Instructions


Remember: The Ark was built by amateurs-The Titanic by professionals.


Please click my scales if you find my advice helpful !


If your claim is successful, please donate 5% so that it can continue to help others.


Your decisions and actions are your own, and should you be in any doubt, please seek qualified professional legal Help.



Please be aware of acting on advice given by PM .Anyone can make mistakes and if advice is given on the main forum people can see it to correct it ,if given privately then no one can see it to correct it. Please also be aware of giving your personal details to strangers





Share this post

Link to post
Share on other sites
Sign in to follow this  

  • Recently Browsing   0 Caggers

    No registered users viewing this page.

  • Have we helped you ...?

  • Create New...