The disease that stimulates the rip-off culture inherent in many Westminster politicians struck with a vengeance when the Tory/LibDem Government sold the Post Office to London’s city institutions and bankers at an obscenely low price. The city sold their shares within days for a massive profit costing the austerity oppressed taxpayer near £1 Billion in lost revenue. I asked GROK for a view on the matter – It is attached below

The recent privatisation by the, “Department for Business, Innovation and Skills” of 70% of the Royal Mail proved to be a complete and utter disaster. The UK taxpayer lost £1 Billion on the deal, primarily a result of the share price being set, (by Vince Cable) at the lowest possible permitted level, acting on the advice of Goldman Sachs and UBS.

Privatisation rules contained a clause allowing, (Vince Cable) to increase the initial selling price per share should demand exceed the allocation, maximising the return. Bids for shares exceeded total availability by twenty-four fold but he declined to do so.

Joe Public was also short changed, being allocated only, 8% of the share total. The vast bulk of the allocation, 62% was given over to 21, “Priority Investors” in the believe that they would be in for the long-term. The wide based spread of share ownership would therefore provide stability. This did not happen, shares are now owned by only 6 large consortia.

The first day of the sale ensured a minimum 30% profit on each share. Priority customers, (included Goldman Sachs and UBS) made a killing.

The National Audit Office, (NAO), in a report to Parliament, severely criticised the actions of Mr Cable, querying the involvement of, Goldman Sachs and UBS, providing stock market advice, including recommended selling price per share together with a large allocation of shares.

Resign Mr Cable!!! Not a chance. I see no wrong, said he!!  Yet another example of the disease that is Westminster. 

GROK report:

https://twitter.com/i/grok/share/DYJBGqHmJUcUo16UDkW616Evb