George Osborne announces plan to sell off Government stake in RBS

The Royal Bank of Scotland (RBS) was rescued with £45.5 billion of government funds during a financial crisis. The government plans to sell its stake in RBS, despite potential losses, to stabilize the economy. The process is expected to take years, with challenges in selling shares at a profit. New measures have been introduced to address misconduct in the finance industry. Relations between the finance industry and the government are tense, with HSBC considering moving its headquarters. The path to a government exit from the banking sector is becoming clearer.

What was the primary reason for the government to invest in RBS during the financial crisis?

• To compete with other banks

• To stabilize the economy and secure the banking system

• To expand its international operations

• To increase its market share

Why might the government sell its stake in RBS at a lower price than it paid?

• To quickly exit the investment and stabilize the economy

• To increase its stake in another bank

• To avoid paying taxes

• To support international trade

What is one of the challenges mentioned in selling RBS shares at a profit?

• The bank is facing legal issues

• The government has no exit strategy

• There is a lack of interested buyers

• The current share price is lower than the rescue price

What new measure was introduced to address misconduct in the financial industry?

• Reducing interest rates

• Offering tax incentives

• Increasing bank holidays

• Lengthening maximum jail terms for misconduct

What is a potential consequence of HSBC moving its headquarters away from the UK?

• Improved relations with the Treasury

• A shift in the financial industry's relationship with the government

• Increased financial stability in the UK

• A decrease in international trade