Since it’s nationalisation after a Government bailout, the Royal Bank of Scotland has now reportedly increased in value to a point where it is now worth what the Government originally paid for it during the banking crisis. This is good news as it shows that tax payer’s money has been used in an effective manner to keep the bank afloat and increase its profitability. But what do the Government do with the bank now it is making money and firmly back on its feet?
One suggestion is that the Government will give everyone in the UK with a national insurance number shares in the Royal Bank of Scotland. This idea was originally laughed off when suggested by a number of Liberal Democrat MPs in 2011 but Chancellor George Osborne now believes this to be an interesting idea if somewhat premature.
Another option the current coalition Government has regarding the Royal Bank of Scotland is to sell their shares in the company for an estimated £45 billion pounds. Whilst this revenue would be good for our Government budget allowing more money to be invested in areas which have recently had cuts would paying back the tax payers be such a good idea?
If the Government decided to give all voters a share in the Royal Bank of Scotland it would be a revolutionary idea to give back to the tax payers after the banking sector bailouts of 2008. Our money was used to make sure the economy stayed afloat and what would be better than seeing your money returned with shares in a profitable, stable bank. This could cause some movement in the banking world as those who decide to keep their shares in the bank will have a vested interest in the bank and may well move their money and mortgages to the bank which they hold a stake in.
This seems like a fairly odd thing for the Conservative Government to do as their agenda is usually based around making profit and less about sharing wealth around the population. Could this be a new leaf for the Conservatives inspired through their partnership with the Liberal Democrats? This is all just speculation at the current moment of time but in the future we may expect to be shareholders of a prestigious banking legend.