A loss on the disposal of RBS is inevitable since the privatisation price of 502p is miles away. But the size of the loss matters

As the chancellor prepared to press the button on his first sale of Royal Bank of Scotland stock, the share price fell to within pennies of its lowest level this year.

Don’t worry, advocates of an early sale will argue, the mere act of starting to dispose of the stake will lead to better prices in future. According to the official script, the government’s steady shuffle towards the exit will awaken the interest of long-term investors. No longer will they shun a bank kept on a tight leash by the Treasury; instead, they will be attracted to a normal commercial institution where the biggest shareholder also seeks value for money.

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Source: The Guardian Circular Economy RSS