UK: Taxpayer Now Owns Nearly 60% of Royal Bank of Scotland
November 28th, 2008Via: Guardian:
Royal Bank of Scotland, Britain’s second biggest bank until the credit crunch struck last year, confirmed today that is now majority-owned by the taxpayer after a £20bn bail-out by the government.
The Edinburgh-based bank announced this morning that its existing investors had shunned its £15bn cash call, leaving almost all the new shares in the hands of the government. The taxpayer now owns 57.9% of the business. Only a handful of investors took up the offer to subscribe to new shares at 65.5p because the bank’s share price had been trading below that level, giving them no incentive to support the cash call.
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