RBS Group

News out overnight reveals that the UK government has sold a 5.2% stake in RBS group – placed with various city institutions at 330p – having closed the previous session at 337p. The sale of the stake had been expected, after being reported in various media outlets leading up to the sale itself yesterday.  But what does this mean for RBS going forward? Clearly, it should be taken as a positive, as the company is beginning the process of extraction from the financial bailout given by the UK government in light of the of the 2008 credit crisis. However, it must also be highlighted that the transition from having a disproportionately large stake owned by a government to being a completely public company again will be long and arduous, with it likely to take around 4 years to complete the entire sale of the UK governments stake.

Senior Trader, Jordan Hiscott

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