RBS

Warning sector could halve in next few years

Speculative investors such as hedge funds stocked up on as much as 60% of the shares released in yesterday's RBS sale as they took advantage of the bargain price offered by the government.

The government has reduced its stake in RBS by 5.4%, selling 630 million shares for £2.1bn in a quick-fire sale to institutional investors.

Fund managers have been clamouring to add banks, including RBS and Lloyds, to their portfolios ahead of a rate rise from the Bank of England.

Renewed underperformance by Newton and Jupiter's UK equity income funds has seen both fall back into Sanlam Private Wealth's 'Black List' of underperforming UK dividend-focused portfolios.

Shares in RBS fell by over 2% this morning as it emerged the bank could be hit by a $13bn bill relating to the way it dealt in mortgage bonds before the credit crisis, a US court has warned.

The FTSE 100 climbed in morning trading despite a 4% slump in Royal Mail shares as RBS and Sainsbury lifted UK blue chips.

Chancellor George Osborne is to begin selling the government's 80% stake in Royal Bank of Scotland at a loss, saying any further delay could jeopardise the economy.

Coutts & Co has hired former St James's Place chief executive Mark Lund as a non-executive director.

The government is to move a step closer to selling its stake in RBS, with Chancellor George Osborne set to lay out plans for its privatisation in a speech next week.