Who would acquire majority stakes in Lloyds bank and Royal Bank of Scotland?
Only a few weeks ago the UK government had been indicating, by unofficial sources, that a majority stake in Royal Bank of Scotland and a substantial stake in Lloyds bank may well be up for sale. However, while profits and comments from the UK banking sector have been predominantly upbeat it seems that the UK government has been forced to put on hold a potential sale of the stakes in Royal Bank of Scotland and Lloyds bank. Indeed, as we covered in one of our earlier post, it seems that the UK government could increase its stake in Lloyds TSB in lieu of payment for the company's participation in the debt insurance scheme.
However, it is inevitable that in due course these share stakes will be sold to the highest bidder although at this moment in time it is difficult to see who would be able to afford such a purchase and whether there may be regulatory problems. The UK government had indicated just a few weeks ago that Middle East investors may well be interested in acquiring these significant stakes but so far there has been no official confirmation and there is unlikely to be so in the short to medium term.
Share this..
Related stories
Who leaked potential takeover talk at International Power?
The Financial Services Authority (FSA) is said to be investigating sharp "unexplained" movements in share price of International Power after a period of speculation during which the name of GDF Suez has been mentioned as a potential bidder for the company. Despite the fact that the companies announced the "end of talks" yesterday there is concern as to how initial talks were leaked to the market a...
Read MoreBellwether survey hints at recovery in advertising market
The latest Bellwether survey will make good reading for the advertising industry with signs that marketing budgets have increased for the first time in two and half years with 21% of companies surveyed increasing their budgets compared with 16% who are still reducing their investment in this area. This would appear to be yet another sign that the UK economy is moving back into positive territory a...
Read MoreFSA set to challenge Lloyds bank fundraising
Lloyds bank's plans to raise around £10 billion to shore up the balance sheet and allow it to pay for its role in the toxic debt insurance scheme, run by the government, are under close scrutiny by the Financial Services Authority (FSA). City insiders believe that the FSA is looking to stress test the Lloyds bank balance sheet amid indications that the company's involvement in the asset protectio...
Read MoreAnnual retirement costs reach over £11,000
24/02/2015 The minimum costs for pensioners to eat, stay warm and have a roof over their heads has risen 8% in the last 12 months to £11,200 per year. Research of government figures on household expenditure from Key Retirement has shown that the annual cost of being a pensioner has risen to £215 a week. These costs come from spending on the basics including food, clothes, travel and heatin...
Read MoreAlistair Darling blames the UK banks for the current recession
In a further spate of the blame game the Chancellor of the Exchequer Alistair Darling has this evening again suggested that the current recession can be laid fairly and squarely at the door of the UK banking sector. Rather bizarrely, he has suggested that the banking companies in the UK had been guilty of "hiding their liabilities" when the Northern Rock debacle was in full flow.
He...