Open Letter to UK Government Investments

Dear Friends at UKGI

I am a taxpayer who happens to be very interested in the return on investment we expect to receive from the investment in the banking sector following the 2007, 2008 banking crisis.

I note the Treasury’s line as delivered by the Chancellor of the Exchequer on 9th October 2008. i.e. as a result of the bailout package:

…The taxpayer… will be fully rewarded for that investment.

And

…the risk remains with the banks and not the taxpayer; in other words, we get our money back.

And

…ensuring that the taxpayer is appropriately rewarded

And

…taxpayers will be rewarded for the risk that they take on

Given the current circumstances, I calculate that the remaining shares that the government owns need to be sold at £51 per share  in order to achieve these stated aims (i.e. a RoI equivalent to that the banks earn. 7%).

Obviously this would be quite a BONANZA.

I ask if you can provide further details as regards future divestiture plans. As a shareholder of Natwest myself, I am very concerned about the government’s handling of this.

Many thanks

Kevin Andrews

Museum of Debt

REPLY RECEIVED