It has been suggested that it might take a decade for the RBS to repay the taxpayers £46 billion that it received as a bailout from the UK Treasury…always assuming the bank can be sold. I suggest an alternative outcome. Whether its sold or not…whether the bank is ever in profit again or not, the taxpayers will never get back their £46 billion. The money has already been written off. Immediate evidence of this will be if ever the public are issued shares in the bank. The share certificates won’t be worth the paper they’re written on. Why you might as well wipe your ass on them!
I’m quite prepared to admit when I am wrong! The British Government had just sold off 5.2% of RBS shares at a loss of £1 billion. Now bearing in mind the more shares one issues, the more the value of existing shares become diluted, by my reckoning, by the time the Treasury has sold off the last of the RBS shares, the taxpayer will have made a £20 billion loss on the original £45 billion bailout. What a great deal that was for British taxpayers!