Yesterday was not a good day for taxpayer bankers. Collectively we have now lost £40 billion on our holdings in RBS and Lloyds. The original investment cost £65.5 billion, so that means so far we have lost more than 60%.
Perhaps the last government who thought nationalisation was a better idea than controlled administration might like to explain these losses. UKFI who manage the holding for us needs to tell us how it plans to get us out at a profit, and why so far its plan as the controlling shareholder has performed so badly. They should have ordered a break up and sale of constituent businesses of RBS from the beginning, to limit taxpayer risk and get some of our cash back.
Mr Brown of course switched out of gold, going later into bank shares. To date we have lost more than £15 billion from gains forgone on the gold he sold. So the switch costs so far are north of £55 billion.