State offloads last ownership share in NatWest following 17-year tenure since intervention
The British Government last night concluded the sale of its final shareholding in NatWest, 17 years after intervening in the lender's struggles during the 2008 financial crisis.
At the time, the bank, formerly known as the Royal Bank of Scotland (RBS), stood on the brink of collapse. Labour's then-government, led by Gordon Brown, acted to prevent its collapse, injecting £45.5 billion to stabilize the bank.
Last night, the Treasury parted ways with a £200 million stake, signaling the end of a contentious chapter that began during the financial upheaval. The RBS rescue was part of a larger series of government interventions, including a significant investment in Lloyds Banking Group, with the remaining funds from that bailout also being sold in 2017.
Chancellor Rachel Reeves commended the 2008 bailout, stating that it had protected the economy by preventing a bank collapse. "That was the right decision," she asserted. "NatWest's return to private ownership marks the closing of a significant chapter in this country's history."
NatWest's chairman, Rick Haythornthwaite, expressed gratitude to the Government and UK taxpayers for their support during the crisis. He noted that the intervention stabilized the banking system and, in turn, safeguarded savers, homeowners, and businesses.
The bailout followed an expansionary phase under RBS's then-CEO, Fred Goodwin, who made headlines for the ill-fated acquisition of Dutch lender ABN Amro in 2007. The decision by Alistair Darling, then-Chancellor, to step in was later criticized by Goodwin as a reckless move. Goodwin was forced out as part of the rescue and stripped of his knighthood in 2012.
Despite encountering scandals throughout its recovery, including allegations of driving struggling business customers towards financial ruin, the bank has managed to return to private ownership. Alison Rose, a former CEO, was replaced by Paul Thwaite in 2023, following a controversial incident involving Reform UK leader Nigel Farage. The bank rebranded itself as NatWest Group in 2020 to distance itself from its financial crisis association.
Last summer, the Government still owned 20% of the bank. The remaining shares were gradually sold off, with the last remaining stake being unloaded in 2025. Although the bailout initiated a net loss of more than £30 billion for taxpayers, officials emphasized that avoiding RBS's collapse in 2008 would have caused even greater financial devastation.
Key Takeaways:
- The British Government finalized its last share sale in NatWest, closing a 17-year chapter that began with the 2008 financial crisis bailout.
- NatWest's return to private ownership marks a significant milestone in the country's economic history.
- The initial £45.5 billion bailout has resulted in around £10.2 billion to £10.5 billion in losses for taxpayers, according to estimates.
- The intervention stabilized the banking system, safeguarding millions of savers, homeowners, and businesses during the crisis.
- The conclusion of the British Government's sale of its final shareholding in NatWest marked a significant step in the realms of banking, finance, and business, following the 2008 financial crisis.
- As part of the larger series of government interventions, both RBS and Lloyds Banking Group received significant investments, which are now fully in private hands.
- The investment in NatWest, along with others during the crisis, enabled the safeguarding of savings, mortgages, and businesses of millions of individuals.
- In the world of investing, the selling off of the government's remaining shares in NatWest signifies a shift in the banking landscape, with stocks and businesses potentially attracting more interest due to the bank's return to private ownership.
