Government reduces stake in Lloyds to below 3%
- Author: Zachary Reyes Mar 15, 2017,
Mar 15, 2017, 17:01
Since then Lloyds has recovered much of its poise, thanks to some decent numbers from the bank itself and from the wider economy, and the shares now trade close to where they stood before the Brexit vote.
The new sell-off marks the next stage in the government's efforts to re-privatise the bank, which was bailed out in the global financial crisis.
It has now recovered £19.5 billion that will be used to reduce the national debt.
In January this year it was announced that the taxpayer was no longer Lloyds' largest shareholder after the government reduced its stake to less than 6%. He continues: "For the Treasury, the elephant in the room is of course RBS, which soaked up £45.5 billion of taxpayer funding during the financial crisis, more than twice the sum needed to prop Lloyds up".
The taxpayers' stake in stake in Lloyds Banking Group has been reduced to below 3 per cent. It owns a stake in the bank bigger than five per cent, according to an earlier regulatory filing.
At its peak following a bailout of Lloyds in 2008, the United Kingdom government held a 43% interest in the bank, but it is widely expected to dispose of the last of its holding this year. The Treasury has been selling shares in the bailed-out lender via a pre-arranged trading plan to institutional investors, and expects to return the bank to the private sector by the end of 2017-18.
"Royal Bank (of Scotland) and Lloyds both have sizeable Scottish operations, so it depends what [.] ultimately happens there and whether (Scotland) actually exits the United Kingdom and stays part of Europe", Shore Capital's Greenwood said, as quoted by Reuters. However, the government has previously said the sales would not realise a loss owing to fees and dividends.