He received advice from Governor of the Bank of England Mark Carney and a review by investment bank Rothschild.
Mr Carney said a phased sell-off “would promote financial stability, a more competitive banking sector and the interests of the wider economy.”
The government provided a £45.5bn bailout in 2008, paying around 500p a share. The share price currently stands at 354.8p.
The Chancellor argued that the sale must be seen as a whole and the share price will increase in subsequent offerings as confidence grows.
Mr Osborne said: “It’s the right thing to do for British businesses and British taxpayers. Yes, we may get a lower price than Labour paid for it. But the longer we wait the higher the price the whole economy will pay.”
The review from Rothschild said that, despite this price gap, taxpayers can expect to make £14bn more than it paid out if the sale of bank assets and fees already received are taken into account.
This was of course after bankers risked all on sub-prime mortgage market in the USA. Now the time has come to sell-off the stake. As with Lloyds and TSB banks. Of course the institutional investors will get lions share. These are amongst the ones that helped put us in the global crisis in the first place, including Wall Street bankers.
Anyway this time it will be a loss to the taxpayer of £14-billion. This of course is a drop in the ocean said one investment CEO today to the BBC almost justifying grand larceny under the guise of good business.
Today this was Reuters take by two writers on our chancellors deficit credentials, see what you think and let me know?