Behind the Money The end of the UK’s ‘bailout era’
Jun 25, 2025
In this engaging discussion, Akila Quinio, the Financial Times' banking correspondent, delves into the end of the UK's bailout era marked by the privatization of NatWest Group. She shares insights on the tumultuous journey of the Royal Bank of Scotland, from its nationalization to its rebranding and eventual recovery. The conversation highlights the financial implications of the government’s ownership on taxpayer burdens and public spending. Quinio also explores ongoing economic challenges in the UK and the potential risks of deregulation.
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End of UK's Bailout Era
- The UK government's sale of its last shares in NatWest marks the end of Britain's bailout era from the 2008 financial crisis.
- This symbolic moment closes a long and costly chapter for taxpayers and government finances.
RBS's Risky Expansion Before Crisis
- RBS aggressively expanded before the crisis, notably buying a major stake in ABN AMRO, making it the world's largest bank.
- This risky growth left it exposed to toxic assets and vulnerable when the 2008 crisis hit.
Government Nationalizes RBS
- In 2008, the UK government bailed out RBS to prevent its collapse, injecting £45.5 billion for an 84% stake.
- This effectively nationalized RBS to avoid chaos and protect depositors.