Banking bailout to turn into profit

12 April 2012

The multi-billion pound banking bailout is a "nice little nest-egg" for the British taxpayer, City minister Lord Myners insisted.

The peer said he was "very confident" that the Government would end up making a profit on the spending, and it would take "much less" than a decade.

Speaking on Sky News's Sunday Live programme, Lord Myners said: "A lot of capital has been put into the banks but that is an investment and that investment will prove to be very productive in due course."

"I am very confident that over time we will achieve a surplus on the investment we have made, and make a profit," he added.

He added: "(It is) a nice little nest egg for the British taxpayer."

Asked how long it would take for the taxpayer to get into the black, the minister replied: "We are already making a profit in respect of our investment in Royal Bank of Scotland (RBS) so we will see.

"It will take time and we do not want to rush."

Pressed on whether that meant a decade, he insisted: "Much less than that."

The Government is estimated to have pumped some £60 billion into Royal Bank of Scotland and Lloyds Banking Group, through capital injections and the insurance scheme for toxic debts.

Earlier this year the IMF predicted that the total bill for the bailout would be more than £130 billion.

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