Lloyds Bank Re_Privatised Soon

Lloyds Bank Re-Privatised Soon.

On the day of a report into the banking sector which saw many banks finding ways to fill the hole in their balance sheets, George Osborne made a speech regarding the sale of the government’s stake in Lloyds Bank.

The 39% owned by the government was in the ideal position to sell and interest by investors was on the rise.

Mr Osborne also spoke out about the position of RBS where taxpayers have 81% stake, and how they were planning on sorting the good from the bad.

Our View

Capital adequacy of financial services firms is critical.  But we are reluctant to see the break up of banks where toxic elements are retained by State ownership and profitable sections returned to the private sector.  This can only lead to a mis-focused banking sector as Government policy will surely lead to economic decisions to inflate property prices and rid itself of the toxic debt risk.

Why do you think the Government has launched the "Help to Buy" scheme?  We believe because it plans to inflate the property market so that it faces little or no risk from toxic debt.  Property bubble on the way we fear.