The debate over whether the state will get back the 502p a share it paid for 81 per cent of Royal Bank of Scotland in 2008 is a peculiarly pointless and sterile one.
First, the bank is not the same as the one we took control of. Second, we are where we are. The investment was a forced one and the investors, that’s us, took a loss. There is little point in sitting on our hands until RBS shares reach that hypothetical £5 figure, because they may not. The sale of 5.4 per cent may even put upward pressure on the price, by focusing the market on the shares, so gaining more from subsequent sales.
The institutions were happy enough to pay 330p a share.