Government takes majority stake in RBS

The Government is to own 57.9% of the Royal Bank of Scotland, after a tiny amount of the new ordinary shares made available to shareholders were taken up.

Just 0.24% of the total number of new RBS ordinary shares were taken up by shareholders, leaving HM Treasury to take up the rest, resulting in the Government owning a sizeable portion of the bank.

The company is expected to sell off some or all of its insurance businesses, although it has been struggling to sell Direct Line at anywhere near the price it wants.

Life insurance: News update: December 2008