Investors turn on Osborne over RBS interference

Investors in the Royal Bank of Scotland have criticised the amount of government interference in the state-backed institution following the ousting of Stephen Hester and the Chancellor’s plans to carve out a “bad bank”.

The Sunday Telegraph understands that at least two major blue-chip shareholders in the Scottish bank have in the past week raised their concerns with UK Financial Investments.

Austin Smith: Pity we didn't have this much Government meddling when Fred was shredding the capital base of the bank !

fiscallysound: Who do you expect to buy the shares off the government to repay the taxpayer (i.e. you)? The opinion of the institutional shareholders matters a lot. 

factualf: The same goes for the two whinging micro-minority institutional investor shareholders  - they kept schtum when RBS was a casino bank didn't they?  But now they're complaining! The Government controls RBS because it (ie we) owns 81% of it on behalf of the tax payer.  Yes 81%.  That gives the Gov a huge controlling majority and if the 'institutional investors' don't like it, they can lump it.  They should count themselves lucky they have any shares left at all.

Brimstone52:  It's because politicians are so good at running things that country is now in the state that it is.

Iain downs: I love this notion of a casino bank. RBS is up the spout beacuse of lending on housing to those that couldnt pay their mortgages. No other reason. This is the same lending the mindless goons in Westminster say needs to be reinstigated. Five years on and people are still stupid enough to belive that somehow this was caused by proprietary speculation. This is the same speculation that had been virtually eradicated from investment banks some five years earlier. It is not a banks fault if the govts panic the markets by cutting interest rates too sharply and destroys confidence in the liquidity in the market .It is not a banks fault that they were forced into lending to people who could not afford to borrow by govt legislation in the US. It is not the banks fault that in the scramble to buy votes politicians bailed out crap banks that had made bad investment decisions in spite of everything the other banks that had not made this decisions was saying. And when people talk about the banks taking peoples money they need to recognise that the govt pronting is to allow govt borrowing and govt bailouts not bank bailouts. Until people start realising that it is govt debt that everyone is struggling to pay back and otcommerical debt we will never solve the problems that exist.

dawkthetalk: Another Osborne policy failure.  He has undermined business confidence in RBS just as it was getting on top of the situation.  For the sake of waiting a year or two to maximise return for the tax payer, he looks for a quick fix to prop up the rapid deteriorating public finances and ineptly decreases the return likely to be realised. 

valencianista: Hester has a proven track record going back to British Land (which i bet he wishes he never left), And Hester was not a banker who created this mess. Osborne & Co did that together with theYanks, BoE and regulators.

westcheshireman: Osborne & Co. He wasn't the Chancellor when the economy went down the pan. I think you means Brown, Balls & Co.

sossiprian: Or maybe he means the Thatcherite Tory chancellors who let the dogs loose in the beginning?

beech: Or perhaps he means the post-war socialists whose intransigence made Thatcher's reforms necessary.

Archie_Douglas: I think you may have got that wrong chum. Your last sentence is utter rubbish showing ignorance and memory failure. "Osborne & Co were in opposition when gordon Brown screwed this country with a squandering zeal and failed regulation policy

steven25: Wake up and smell the coffee. The Government has got a majority stake and will do what it likes. Don't expect what it does to make business sense for RBS or anybody else, it will use its power for political purposes. The moral is simple: don't invest in companies where the Government calls the shots.

morgan: Correct. If investors don't like it they can sell their shares and invest in something else. Of course they are holding with the expectation that the taxpayer bailouts are going to result in big profits for them.

evad666: The UK Government (the Labour Party), The Regulators (the FSA) and the senior Management of the Bank should be prosecuted and either imprisoned or have assets seized for their gross negligence in the handling of the Financial Crisis. Some countries came out of the disaster because they retained some modicum of principle, while ours was too busy playing with the public finances. The adoption of light touch regulation and its consequences are not yet finished.

basingstoke67: And of course, Mr. Cameron and his cronies are not to be blamed in any way? You forgot to blame the BBC, I notice.

evad666: The RBS fiasco ran for thirteen years of Labour's watch.

nicknuts: That is correct. Also you can row the BBC in if you like. They are the mouthpiece and PR machine of those destroying losers called Labour after all.

Austin Smith: It all went belly up long before Cameron came on the scene.

non_partisan:  I just love the stupidity of English people. They also seem to have short memories. What Labour did was to be exactly like the Tories, i.e. light touch, markets oriented, etc. LOL! If the Tories were in government from 1997 to 2010, it would have been absolute disaster.

Brimstone52: It was the Tories that initiated de-regulation of the financial service industry in the 1980s. It seems that people have forgotten "Big Bang" already.