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Government to buy majority share in RBS

The government is set to own around 60% of the Royal Bank of Scotland (RBS) and invest up to £15 billion pounds. RBS in one of the many banks that has been exposed to the bad debt based on U.S sub-prime loans.

Just 0.24% of the shares offered to investors last month were taken up and this meant the government had to step in. Stephen Hester, RBS chief executive, said: “We regret that existing shareholders did not take up their pre-emptive rights but understand that market sentiment toward the banking sector made this uneconomic in the short term.”
 
28 November 20008