Sir Philip Hampton takes over at Royal Bank of Scotland
Sir Philip Hampton has been installed as the new chairman of the Royal Bank of Scotland or as many would see it, an enforcer for the government, which has taken a significant stake in the business. This is the latest in a long line of employment positions which Sir Philip has taken over the last few months including the chairmanship of Sainsbury.
The government is very keen to use its 60% stake in the business to push through increased liquidity levels and more consumer and business friendly interest rates. However, there is a need to also appreciate that the remaining 40% of the business is held by individual shareholders and institutions which also need a return on their investment. This is a situation which has and continues to put the government at loggerheads with both UK taxpayers and Royal Bank of Scotland shareholders.
It will be interesting to see how the Royal Bank of Scotland fits into the government's plans for the financial sector and what pressure they can put on the company to release more funding across the board. This is the very grey area where by the government could be seen to be influencing a commercial bank, by virtue of its 60% holding, and impacting upon a so-called "free-market".
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