Government sale of RBS Shares - good buy??

redux

uknick wrote: »

I think the only reason he is looking to sell is to raise cash to reduce the deficit as mentioned above. Following on from this thought, it worries me if he doesn't think tax receipts will do the job. Is he expecting another significant drop in the economy?

I don't know, but he appears to want to pass legislation that may limit a future government's options for setting a budget according to circumstances that prevail at that time.

He may well run foul of this himself in future, or already have done so if it had already existed in the last few years.

Remember when he gleefully promised to match Labour's spending plans, not long before the crash? He hopes we don't, hence the mass deletion of speeches from the Conservative party website.

jimjames

gazwaldo8 wrote: »

Sounds as if its wide open for favoured bids (ie corruption!!)

Hardly, when the shares are traded so there is a known price that a buyer can get them for directly from the market. Price is transparent as it is announced once the deal is done.

atush

arbster wrote: »

I'm not a financial advisor, so can't predict the future, sadly.

Who told you FAs could? They can't either.

Freecall

atush wrote: »

Who told you FAs could? They can't either.

Credit where credit is due. Predicting the future is the role of economists not FA's.

Economists have managed to acurately predict 12 of the last 3 downturns.

gazwaldo8

jimjames wrote: »

Hardly, when the shares are traded so there is a known price that a buyer can get them for directly from the market. Price is transparent as it is announced once the deal is done.

But the shares in this instance dont appear to be open for sale from the market - ie to me and you - only big institutions, of which, dare I guess guess, are run or at least have an interest by many of our finest MP's!

BookerTee

It will turn out to be a huge give away to the rich city boys at the expense of the public yet again.
The money will be used to make a very small dent in the national debt which the Conservatives have almost doubled in the last five years.

Thrugelmir

BookerTee wrote: »

It will turn out to be a huge give away to the rich city boys at the expense of the public yet again.
The money will be used to make a very small dent in the national debt which the Conservatives have almost doubled in the last five years.

Who decided to bail RBS out?

RBS as it stands today is a very bank to that in October 2008. There's still huge risk attached to the shareholding and no certainty that the road won't get rocky in the future.

colsten

gazwaldo8 wrote: »

But the shares in this instance dont appear to be open for sale from the market - ie to me and you - only big institutions, of which, dare I guess guess, are run or at least have an interest by many of our finest MP's!

You are most likely getting completely carried away in your [repeating] guessing game. Please do list

1. who our finest MPs are
2. which companies they run, and/or have an interest in

Also, please explain why you believe that the details of the government's share sales will not be available for public examination.

peterg1965

Institutional investors are big fund houses and insurance companies, many of us will benefit through holdings in OEICs et al, so what is the problem here, many us stand to profit/make gains from the sale of RBS. I for one will be wanting some shares if there are ever offered direct to Joe Public.

EdGasket

How is the price ever going to go up with 80% overhang in the shares waiting to be offloaded in the market and them paying no dividend? Seems like a very bad investment to me.