Lloyds Bank.

[Farriercm]

Osborne says he will sell off LLoyds bank shares to individuals , When he thinks the time is right, after he has sold the bulk of these shares to Money Managers. Who are these Money Managers.

[New Judge]

“That individuals can, if they can afford it, join in, is really besides the point.”

I could understand that, OG, if I knew what exactly the point is. You began by saying “I along with millions of others, own a bank.” Well you don’t. The shareholders own the bank and the government (at the moment) is a major (though by no means a majority) shareholder. The government is now offloading some of its shares (ultimately it will shed all of them) because the time is right. People moaned when the government acquired shares in the banks to restore their liquidity and now they are moaning because they are selling the same shares. Whilst I accept that you had little choice in the matter, the government buying and selling shares is no different to fund managers doing the same. Members of the fund do not “own” any of the companies in which the fund invests and cannot dictate what transactions the fund manager makes.

I really cannot understand what your objection to this matter is. The government had to bail out the banks. The reason why the banks got into such a position is immaterial. Had the government not stepped in there would have been financial carnage. Now they are seeking to restore the situation by selling the shares they bought (because, after all, why should a government retain shares) and that is wrong! They are not selling “the family silver”. Lloyds never was a state owned institution and was never likely to be. It is not the same as selling, say, utility organisations. That is a different argument entirely (but a strategy which, with one or two exceptions, I entirely support). As I said, I would understand your antipathy towards the government’s action and your suggestion that others being able to do the same as not being the point if I understood what the point was. But I don’t.

I hold no brief for this government but perhaps you could explain to me why selling another tranche of Lloyds shares is such a terrible thing.