UK may never recover £66bn spent to rescue banks - MPs
A report from the Public Accounts Committee pours cold water on hopes of a quick sale of the State’s holdings in the banks.
The committee said that the handling of the sale of Northern Rock suggested that the Government lacks the skills and resources to conduct a successful sale of the RBS and Lloyds stakes.
The report, based on evidence taken from senior officials at the Treasury and UK Financial Investments – which manages State holdings in banks -- dismisses any prospect of a quick sale of any of the State’s holding in the banks.
The Government will have to keep its shares for some time to come, the committee predicted, and “the £66 billion cash spent purchasing shares in RBS and Lloyds may never be recovered”, the MPs said.