IT COULD take more than a decade for the Government to get its money back following the bank bail-outs as increased regulation and eurozone debt fears drive away investors, it was claimed yesterday.
The taxpayer is now sitting on a £30bn loss on its 83% shareholding in Royal Bank of Scotland and 41% stake in Lloyds Banking Group following last week’s stock market rout, according weekend reports.
Senior City sources said stiff new regulations forcing the banks to horde more of their money and the threat of further stringent reforms proposed by the Independent Commission on Banking have put off investors.
It could take at least a decade for the shares to recover to the level paid by the Government, while some analysts have warned that the ICB’s tough line of reform could kill the prospect of a sale altogether.
The ICB wants banks to ring-fence their investment and retail arms to make more secure if there is another financial crisis.
