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| Version 2 | Version 3 |
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| RBS government stake to be sold, chancellor announces | RBS government stake to be sold, chancellor announces |
| (about 9 hours later) | |
| The government plans to sell its stake in the Royal Bank of Scotland, Chancellor George Osborne has announced in his annual Mansion House speech. | The government plans to sell its stake in the Royal Bank of Scotland, Chancellor George Osborne has announced in his annual Mansion House speech. |
| Mr Osborne said the "decision point" had been reached. | Mr Osborne said the "decision point" had been reached. |
| Governor of the Bank of England Mark Carney said the phased sell-off "would promote financial stability" and benefit the wider economy. | Governor of the Bank of England Mark Carney said the phased sell-off "would promote financial stability" and benefit the wider economy. |
| Mr Osborne also set out more details of the sell-off of the Government's remaining stake in Royal Mail. | Mr Osborne also set out more details of the sell-off of the Government's remaining stake in Royal Mail. |
| Royal Mail employees will share a further 1% tranche in the firm, while 15% will be placed with institutional investors. | |
| The government provided RBS with a £45.5bn bailout in 2008, paying around 500p a share. The share price currently stands at 354.8p. | The government provided RBS with a £45.5bn bailout in 2008, paying around 500p a share. The share price currently stands at 354.8p. |
| 'Best price' | 'Best price' |
| The chancellor argued that the sale must be seen as a whole and the share price will increase in subsequent offerings as confidence grows. | The chancellor argued that the sale must be seen as a whole and the share price will increase in subsequent offerings as confidence grows. |
| Mr Osborne said: "It's the right thing to do for British businesses and British taxpayers. Yes, we may get a lower price than that was paid for it - but we will get the best price possible. For the longer we wait, the higher the price the whole economy will pay." | Mr Osborne said: "It's the right thing to do for British businesses and British taxpayers. Yes, we may get a lower price than that was paid for it - but we will get the best price possible. For the longer we wait, the higher the price the whole economy will pay." |
| A review from Rothschild investment bank said that, despite this price gap, taxpayers can expect to make £14bn more than it paid out in bank bailouts if the sale of bank assets and fees already received are taken into account. | A review from Rothschild investment bank said that, despite this price gap, taxpayers can expect to make £14bn more than it paid out in bank bailouts if the sale of bank assets and fees already received are taken into account. |
| RBS has already paid back about £5bn in fees and repayments for insurance systems set up by the government as part of the bailout. | RBS has already paid back about £5bn in fees and repayments for insurance systems set up by the government as part of the bailout. |
| 'Knock-down rate' | 'Knock-down rate' |
| But the plan drew criticism from the Unite union, whose members include bank workers. | But the plan drew criticism from the Unite union, whose members include bank workers. |
| "By selling off the public stake in the Royal Bank of Scotland, George Osborne is short-changing the public and wasting a historic chance to bring needed change to Britain's banks," the union said, criticising the risk of selling the stake at a "knock-down rate to city investors." | "By selling off the public stake in the Royal Bank of Scotland, George Osborne is short-changing the public and wasting a historic chance to bring needed change to Britain's banks," the union said, criticising the risk of selling the stake at a "knock-down rate to city investors." |
| City sources have told the BBC's Business Editor Kamal Ahmed that Mr Osborne wants to take a two-stage approach to the sale. | City sources have told the BBC's Business Editor Kamal Ahmed that Mr Osborne wants to take a two-stage approach to the sale. |
| Firstly, he wants an inquiry into the options for a sale and how it would be done. This could include a "Tell Sid" British Gas-style retail offer to the public or, as is perhaps more likely, a sale to institutions such as pension funds. | Firstly, he wants an inquiry into the options for a sale and how it would be done. This could include a "Tell Sid" British Gas-style retail offer to the public or, as is perhaps more likely, a sale to institutions such as pension funds. |
| Secondly, he will look at a timetable for when the sale will start to take place. | Secondly, he will look at a timetable for when the sale will start to take place. |
| RBS's chief executive, Ross McEwan, said, "I welcome this evening's announcement from the Chancellor and we are pushing ahead with our strategy to build a simpler, stronger, fairer bank that is totally focused on the needs of its customers and centred here in the UK. | RBS's chief executive, Ross McEwan, said, "I welcome this evening's announcement from the Chancellor and we are pushing ahead with our strategy to build a simpler, stronger, fairer bank that is totally focused on the needs of its customers and centred here in the UK. |
| "When the Government starts selling its shareholding, it will be selling a bank determined to be the best in the country." | "When the Government starts selling its shareholding, it will be selling a bank determined to be the best in the country." |