BBC News – Lib Dem urges RBS and Lloyds shares giveaway

Senior Liberal Democrats want the government to give away billions of pounds of its shares in Royal Bank of Scotland and Lloyds Banking Group to the general public.

The radical idea would see most of its stake in the banks shared between 46 million adults on the electoral roll.

A floor would be set so the shares could not be sold until they had passed the price paid by the government.

Individuals would only keep any gains made above that floor price.

The government spent £65.8bn buying shares in the banking giants.

It owns 83% of RBS and 41% of Lloyds.

The idea is set out by Stephen Williams, Liberal Democrat MP for Bristol West, in a pamphlet for the think tank Centre Forum.

He said: “There is a danger that when the banks return to the private sector, it is business as usual. There is a general feeling in this country that we need to get something positive in return for the bail-out.

“This plan would recoup the public’s investment and allow the taxpayer to get the benefit from any increased value in the banks.”

via BBC News – Lib Dem urges RBS and Lloyds shares giveaway.

Strange plan, but they’re in a strange position… One big seller with a need to sell fast and a market that A. knows this, and B. knows their break-even price doesn’t really stand much chance. This proposal seems to have no downside…perhaps why it worries me.

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