Taxpayer is in profit on RBS

ROYAL Bank of Scotland shares have jumped higher than the price the government was forced to buy them up at to save the bank from going under. As things stand the tax payer would make a profit of £180m on the 84 per cent government stake.

It is thought the spike in share price was spurred by talk the bank could recoup some of the £550m lost on an alleged fraud at Goldman Sachs. However, a snap sale of shares is thought to be unlikely.

Shares in RBS closed up 2.1 at 50.4p. The government bought the shares at the equivalent of 50.2p.