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Tuesday 20 January 2009

Gordon Brown's biggest loss so far

Forget the Conservative's Black Wednesday or even Brown's Bottom, Gordon Brown has surpassed them all. He has just lost the UK £5.96 billion in under a day. Alex Masterley has the details:
"At close of business last Friday, the UK government held £5 billion in preference shares and a 50% of the ordinary shares of RBS. I calculate the market cap of all of the company’s ordinary shares at £8.33 billion, so the total government holding of prefs and ordinaries would have been worth about £9.16 billion.

At the weekend the government cut what it thought was a good deal to exchange the prefs for ordinaries at a price 8.25% below the Friday closing price, giving the government a 70% interest in the ordinaries. Unfortunately the share price fell 67% on the day leaving the market cap of RBS at £4.58 billion, and the UK government’s 70% share at £3.2 billion. So instead of getting a benefit of a £400m discount on the conversion price, the government took a £5.96 billion loss on the day."


Simply masterful but has the BBC covered this loss? No, of course not. If it had been a Conservative government then this would be headline news but as it is Gordon Brown's Labour government, not a word... When will the BBC start to notice that Gordon Brown is destroying the UK economy piece by piece, when will they notice that the Great Clunking Fist is a Great Clunking Failure? When will the BBC stop acting like the propaganda arm of the Labour Government?

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