Jo Swinson has welcomed a proposal to give bank shares to the public.
Jo has joined Liberal Democrat colleague Stephen Williams MP in calling on the government to give shares in state-owned RBS and Lloyds to British people.
During the financial crisis of 2008-9, bailing out the two banks cost the taxpayer £66bn. Under the plans, as the banks return to profitability the Treasury would transfer ownership of shares in the banks to all UK adults on the electoral register. By mass distributing stakes in the two banks, taxpayers are given a fair share of banks’ profits, while ensuring the Treasury recoups its investment.
Commenting, Jo said:
“At the moment, the public has a 43% stake in Lloyds and an 84% stake in RBS, but no real say in how these institutions are run. This innovative plan would give people a stake in the banks’ performance, a positive share in the rewards and help the Treasury recover its costs.
“The banks continue to pay themselves shameful levels of bonuses whilst the public suffers the cost of bailing them out. As financial services continue to recover and their revenues increase, it seems fair that the public money used to save the banks from collapse be returned to the taxpayer.”
To download the pamphlet on the proposals, visit the Lib Dem website atwww.libdems.org.uk/siteFiles/resources/PDF/SW/20110307%20CentreForum%20Pamphlet.pdf
As the banks return to profitability, the Treasury would transfer ownership of shares in the banks to all UK adults who are on the electoral register. A proportion of the profit from the sale of the share will be taken by the Treasury to cover the cost of the bailout. This would ensure that the Treasury gets its money back while the public, rather than foreign buyers, benefit from the increase in value of the shares.