Labour calls for investigation into plunge in RBS’ share price

Tim Wallace
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LABOUR MPs will today call for the Treasury to write a report into George Osborne’s handling of RBS and how he is planning to get good value for money for the taxpayer from the bailed-out lender.

The bank’s share price has crashed in recent weeks, falling by more than 20 per cent from its high point of 353.5p in May.

Much of the fall came after the bank’s boss Stephen Hester said he was leaving, after months of increasing pressure on RBS to lend more freely to businesses and cut back investment banking activity.

“The value of the taxpayer’s stake in RBS has now fallen by over £4bn since Stephen Hester was ousted with no replacement lined up,” said Labour’s Ed Balls. “And while the chancellor has been forced to back down from his foolhardy idea of a pre-election loss-making fire sale of RBS, we know with George Osborne that the political games always come before the economics and the taxpayer’s interest.”

The Treasury was last night unavailable for comment on the proposed amendments to the banking bill and today’s debate.