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Rediff News  All News  » Business » UK loses nearly 11 bn pounds on RBS, Lloyd stakes

UK loses nearly 11 bn pounds on RBS, Lloyd stakes

July 13, 2009 18:48 IST

The UK government has incurred notional losses of nearly 11 billion pounds on its stakes in Royal Bank of Scotland and Lloyds Banking Group.

"The UK government is sitting on losses of almost 11 billion pounds from its rescue of Royal Bank of Scotland and Lloyds Banking Group and there will be no quick exit for the taxpayer. . .," The Telegraph has reported.

Attributing to the annual report of the UK Financial Investments -- a body which manages government's stakes in banks -- the daily said the losses on the shareholding in RBS and Lloyds Banking Group had reached 10.9 billion pounds at the end of June.

UKFI holds 70 per cent stake in RBS and 43 per cent in Lloyds Banking Group.

"The losses, which are not yet realised, have been wracked up since Gordon Brown was forced to inject billions into the troubled lenders in October," the publication said.

These banks were among the financial entities bailed out by the British government in the wake of the economic turmoil.

As part of the rescue efforts, the UK became significant shareholder in such companies.

In a statement posted on its website on Monday, UKFI's chief executive John Kingman said every UK household would have more than 3,000 pounds invested in shares in RBS and Lloyds.

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