Several plans have been set ahead to distribute billions of pounds belonging to Government shares in Royal Bank of Scotland and Lloyds Banking Group among the general public. A strong support has been noticed from Liberal Democrat MPs for achieving this aim.
In other words, by tendering out most of the State's shareholdings to 45 million people scheduled on the electoral roll, this radical proposal has been initiated to privatize the semi nationalized banks.
City firm Portman Capital, is working on this idea since 2009, and has now finally succeeded in getting support from the Lib Dem Treasury Parliamentary Committee. This committee is chaired by Stephen Williams, who is very well known as the MP for Bristol West.
According to them, 75% of the publicly-owned shares could be distributed with a "floor" price set. This will not enable to let these get sold until they had cleared the price paid by the Government. And specially then when it bailed out the two banks at the pinnacle of the financial calamity.
The proceeds up to the floor price would be received by the Government and beyond that any amount of gains would be given to people.
This would be a cheaper way for the government to recover its money, as stated by the Portman Capital. This way it would also grant taxpayers with the chance to profit from upcoming profits and further growth in the banks.












