Taxpayer set to earn £30bn from bailouts

first_imgMonday 30 August 2010 8:58 pm Share whatsapp whatsapp Tags: NULL THE government is set to make almost £30bn from its emergency bailout of British banks, according to new research out today. At the time of the bailout, some observers predicted the taxpayer would end up nursing losses of around £850bn. But The Banker magazine says a combination of recovering profits, rising equity markets and fees charged on loans and guarantees will net the government a massive £30bn profit. British taxpayers are currently breaking even on their 83.2 per cent holding in Royal Bank of Scotland (RBS) and 41.3 per cent shareholding in Lloyds Banking Group when dividends and other earnings are taken into account.If the equity market rises in line with economic growth, the taxpayer is likely to see a paper profit of £19bn within five years, according to an estimate by the Centre for Economics and Business Research. A further £8bn will be due from fees for loans, bond guarantees and the Asset Protection Scheme (APS). Lloyds paid £2.5bn to join the APS, even though it did not ultimately participate. And RBS has so far paid £1.4bn for the guarantee, although losses are unlikely to be large enough to require taxpayer money. Taxpayer set to earn £30bn from bailouts Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofTortilla Mango Cups: Recipes Worth CookingFamily ProofNew England Patriots’ Cam Newton says no extra motivation from Mac Jones’SportsnautBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family Proof KCS-content Show Comments ▼last_img

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