Member Article

Government lost taxpayer £230 million in Lloyds share sale

A £230 million shortfall in the first sale of shares in Lloyds Banking Group should be treated as a cost of securing stability amid the financial crisis, say the National Audit Office.

A report published today on September’s share sale finds it was “managed effectively and provided value for money,” despite the loss.

The National Audit Office (NAO) commended UK Financial Investment’s work in managing the sale process to institutional investors, which raised £3.2 billion.

Amyas Morse, head of the National Audit Office, said: “The programme of sales of the taxpayers’ holdings of bank shares has got off to a good start. Sale options were reviewed thoroughly and UKFI looks to have got its timing right.

“The sale took place when the shares were trading close to a 12-month high and at the upper end of estimates for the fair value of the business. Furthermore, the share price in trading after the sale has remained steady.”

This was posted in Bdaily's Members' News section by Tom Keighley .