UK sells 5.4% RBS stake at £1b loss, sparking criticism of Osborne

London

THE UK Treasury has sold 630 million shares or a 5.4 per cent holding in The Royal Bank of Scotland (RBS) at 330 pence a share - some 170 pence or 34 per cent less than the 502 pence the government paid when it bailed out the bank.

The loss came to £1.07 billion (S$2.3 billion). The proceeds from the sale - the first of several - amounted to £2.08 billion, leaving the government's stake at 73 per cent of the bank's shares. The government bailed out RBS in 2008 and 2009 by buying its shares for £45.5 billion to prevent a collapse of the ailing bank.