In case you missed it, majority control of the Royal Bank of Scotland passed into the hands of the British Government today. The government now owns 57.9% of the bank.

Royal Bank had been trying to raise new equity capital but its attempt failed when just 0.24 % of the shares offered were picked up by the public. The government then stepped in and purchased the unsubscribed shares.

The outcome is not surprising; however, the almost complete disinterest in the share offering is sobering. It seems to be a pretty profound statement at to the interest of private investors in banks. Once again, a market statement was made here and it was emphatic in voting no confidence in the sector. It will probably be a long time before the western governments are able to realize the “profits” they claim will accrue to their nationalization efforts.

More:here