UK Bucks The Global Trend Of Bailout Exits

At a time when governments are exiting banking bailouts the world over, the UK government has increased its bailout of the banking sector by a hefty GBP31bn. This includes GBP25bn injected into RBS (which raises the government's stake from 70% to 84%) and the GBP5.7bn which the government will pay as a shareholder in Lloyds' rights issue. Altogether, these injections result in a doubling of the 2008 government bailout. Instead of an exit, we have a doubling of government involvement in banking. In our view, UK Financial Investments, which is the body administering the government's stakes in the banks, is

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