UK taxpayers no longer own NatWest - but 17 years on, are banks safer from collapse?
Summary
The UK Treasury has sold its final shares in the NatWest Group, ending the government's ownership stake nearly 17 years after the bank was bailed out during the 2008 financial crisis. This completes a significant event in British banking history that initially involved a large financial rescue to prevent a collapse. The sale raises questions about the current stability and safety of banks in the UK.Key Facts
- The UK Treasury sold its last shares in the NatWest Group, taking the bank back to full private ownership.
- The government bailout of NatWest (then RBS) began in 2008 to prevent the bank's collapse during the global financial crisis.
- The government spent £45 billion to rescue the bank, which equates to £73 billion in today's money.
- In 2008, RBS's balance sheet, representing its loans, was larger than the UK economy.
- The bailout was intended to protect the economy, not just the banks, from the financial crisis.
- About £10 billion of taxpayers' money from the bailout will not be recovered.
- Risky loans and mortgages in the US had contributed to the financial crisis affecting banks globally.
- Current questions focus on whether UK banks are still vulnerable to crises and if they remain "too big to fail."
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