RBS shares above 200p after consolidation
A Royal Bank of Scotland (RBS) share price rise of 975 per cent ought to be very good news for the taxpayer, unfortunately today's dramatic gains are the result of a share consolidation as opposed to some actual good news for the 84 per cent state-owned lender.
A Royal Bank of Scotland (RBS) share price rise of 975 per cent ought to be very good news for the taxpayer, unfortunately today's dramatic gains are the result of a share consolidation as opposed to some actual good news for the 84 per cent state-owned lender.
The Royal Bank of Scotland's board agreed to give shareholders one share each for every 10 shares they currently hold, pushing the stock price up from around 20p before the bank holiday to 212p as of 11:36.
The idea behind the consolidation is to reduce the volatility of the bank's share price and, hopefully, to improve investor confidence.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
In order for the taxpayer to get back the £45bn spent rescuing RBS in 2008 and 2009 the share price would now need to rise to around 500p per share.
BS
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Will “Liberation Day” strike again?
Donald Trump’s 90-day tariff pause comes to an end on 9 July. Can we expect further market turmoil?
-
Israel claims victory in the '12-day war' with Iran
Donald Trump may have announced a ceasefire in the 12-day war between Israel and Iran, but what comes next depends on what happens internally in Iran