UK government to sell $3.5B stake in Royal Bank of Scotland

LONDON (AP) — Britain's government says it intends to sell a 2.6 billion pound ($3.5 billion) part of its shareholding in taxpayer-owned Royal Bank of Scotland Group to institutional investors. The decision comes only weeks after the bank, which was bailed out during the financial crisis, announced it had agreed to pay $4.9 billion to settle U.S. claims that it misled investors who bought securities backed by risky mortgages in the run up to the 2008 financial crisis. The disposal will take place this week in a process managed by investment banks Morgan Stanley, Citigroup, Goldman Sachs and JPMorgan, according to UK Government Investments, which manages taxpayers' RBS stake.
The government of the United Kingdom announces its intent to sell a 7.7% stake in the Royal Bank of Scotland, expected to raise £2.6 billion. Shadow Chancellor John McDonnell says there is "no economic justification" for selling the shares.