Why The UK Shouldn't Begin Selling RBS Stake

Back in March, before the general election, UK Chancellor George Osborne said that he wanted to start selling the British government’s 79% stake in the Royal Bank of Scotland, and next week he is expected to layout more specific plans. Investec analyst Ian Gordon, who is bullish on RBS, argues that Osborne shouldn’t be so eager to start the sell-off at today’s prices because the market is over-reacting to recent news of misconduct. “Following sharp underperformance in 2015 YTD we believe the share price now carries an exaggerated “uncertainty discount” for outstanding conduct issues which should unwind over the next…