General Chat

We are all speculating on this news story and will have to await details of this "windfall". It was in the news yesterday which suggests that one or two "close to Osborne" have been briefing. Also, probable that RBS are getting the details of the sale together so it can be run out before the next election in 2 years time.

All I know about it is my vague experience of previous sales. I was thinking of Halifax in particular when I was offered loads of shares for £260 which were already worth over £500 on stock exchange. I sold them about 10 years later for approximately £2,600 (10X what was paid originally). And received loads of dividends in intervening 10 years.

BG wasn't quite as good, but made loads of money on those too (thanks Sid).

And, if Government is backing sale (as with BG), it should be an attractive offer if you were a taxpayer at the time. And I think it WILL happen before election, personally. No smoke without fire. Oh, and banks will be happy to loan the upfront cost as it is backed by solid shares. :-)

OK - I must come clean.

I worked for the said organisation from 1968 to 1970. I suppose I must take a portion of the blame for its current demise & I have my cheque book ready to repay any damages. Luck would have it that my account is still with the same bank & branch.

i'm still clueless lol

Nite sue x

Now I am bored with posts that haven't been researched so I'm off.

Believe what you like...lololol :-D :-D :-D :-D

Too true Muffy. I'm always borderline. Maybe I should borrow the stake from a bank.

Vera

George Osborne has played down claims he plans to give British taxpayers up to £400 in Royal Bank of Scotland (LSE: RBS.L - news) shares before the next election.

The Chancellor, speaking to Sky News at a G20 meeting in Moscow, said it was too early to consider handing out shares and returning the bailed out bank to the private sector.

His intervention came after reports that Economic Secretary to the Treasury Sajid Javid was exploring plans to sell the Government's stake by 2015.

The Chancellor insisted a sell-off could not happen soon because it would mean a huge loss to the taxpayer, but he notably did not rule out such a move.

Mr Osborne said: "It is just a premature discussion about what to do with the shares when we get to the point where they are worth what the country paid for them.

"Gordon Brown bought them at a price that they are not worth today and we have got to get the Royal Bank of Scotland to a point where it is worth what the taxpayer paid.

"Then we can have a no doubt big national discussion about what to do with the shares and how to return it to the private sector."

RBS was bailed out with £45bn in public funds in 2008 at the height of the financial crisis and is now 81% owned by the state.

If that's the case Vera then I don't know anyone in my close circle that could afford it..so it will only be the uber rich who will benefit..not the average joe who bailed the banks out with their money.........

Thanks John. I think I got it but it looks as if I have to give them money up front. Don't have any.

Vera

Sooooooo the government buy shares.....gives them at face value to the tax payer........the banks profit from the buying of shares????(assuming) then the tax payers are... the government hopes...going to sell them off when the market is low.....then.they...or the banks buy them back?? (once again assuming).......eventually the price shoots up again....Government recoups initial outlay.banks quids in?

As is clear I don't have an economic mind...just a cynical one...quite prepared to be told my theory (which is all it is) is wrong.

Island taught me everything I know ;-)

:-D :-D :-D - *tuts* - you're as bad as Island, Mersey - she's always pulling me away and putting me to bed :-P ;-)

A share will have a nominal or par value: 1p, 10p, £1 or any other sum in any currency. And it is an absolute rule that a share cannot be issued fully paid for anything less than its nominal value – that is, it cannot be issued at a discount. A company cannot issue a £1 share fully paid for 99p or less. A company thus has no ability to issue free shares (but it may buy shares in the market and give them as free shares to employees, say, as part of an incentive scheme).

You may just wish to check FACTS first

Pinches Wend by the lug hole >>>>>>>>>>>>>come with me hence withhhh :-D ;-)

Vera. Got that ;-)

Vera. Don't know is answer.

But facts are that shares were 700p (or equivalent) in 2007. We paid 50p to dig them out and shares subsequently fell to 20p.

So it will be up to £400 for taxpayers in 2010. And it will be in shares.

My guess is they will float shares at, say, 50p and give us an opportunity to buy them at half price.

Thus, if you are offered £400 worth of shares they will only cost you £200. And, if price remains at 50p, you can immediately sell and put £200 net profit in your purse.

I think they will do something before election. And you can bet your bootees that it won't cost Osborne much at all. And RBS and the City will do well - even better than us.

Chocolate in hand :-D

John. Just tell me. Am I going to get some money. I pay and have paid tax for many years. Tiny amount now. I've just added to the vino glass and can't work it out. Will it be cash in hand or in the form of shares.

Vera

No Errol because there was a knee jerk reaction to safeguard the speculation re other banks who were in dire trouble.

Everyones' savings up to £85k (was £50k I think when this happened) is guaranteed to be paid by the government. If we did the sums I reckon by the time most people had transferred as much as possible the compensation would have been a damn site less than £45bn plus the additional billions lost since we became the proud owners.

It's one of my pet hates re bail outs :-P

Aaaw Eeyore, don't take it to heart, he doesn't know you like I do :-D

We expect the OP to be accurate but sometimes life lets us down ;-)

Go have some chocolate and kick the tree stump :-D

Supercrutch - the point being, they were not safeguarded.