Timetable for bank sale
Chancellor targets RBS privatisation share sale
Chancellor Philip Hammond said the sale of the government’s 71% stake comes as the bank prepares to settle a multi-billion dollar fine with US authorities for mis-selling mortgage securities.
Mr Hammond has been awaiting confirmation on the size of the expected fine with the US Department of Justice, which could be as high as $12bn.
The Treasury said in Wednesday’s Budget that it “intends to recommence the privatisation of RBS before the end of 2018‑19 and to carry out over the forecast period a programme of sales expected to dispose of around £15bn worth of shares, which represents around two thirds of our stake at current market prices”.
Ross McEwan, RBS chief executive, has indicated that the bank is “optimistic” of reaching a final settlement with the US authorities this financial year.