Government Refuses to Reveal Fees Paid for NatWest Privatisation

Strategic Insights -

The UK government has denied a freedom of information request to disclose the fees paid to investment banks for the privatisation of NatWest, citing concerns that it would undermine the commercial interests of the banks involved. The refusal comes amid criticism from a Liberal Democrat MP who argues that taxpayers have a right to know how much of their money ended up as fees to big investment banks. The privatisation of NatWest was completed in stages between 2015 and 2025, with multiple investment banks playing various roles in the process.

Key Takeaways:

  • The UK government has refused to disclose the fees paid to investment banks for the privatisation of NatWest, including Goldman Sachs, Morgan Stanley, Rothschild, and others.
  • UK Government Investments (UKGI) cited concerns that disclosing the information would harm future contractual agreements with financial institutions and disadvantage the banks involved.
  • The privatisation of NatWest was a multi-stage process between 2015 and 2025, involving seven investment banks.
  • Goldman Sachs was involved in the privatisation since August 2016 and had an additional role as a bookrunner on the ABBs conducted in 2015, 2018, and 2021.
  • Morgan Stanley was also engaged as a bookrunner on the ABBs of 2015, 2018, and 2021, and had an additional role as the broker trusted with ensuring a measured and orderly sales of shares through the trading plan between 2021 and 2025.
  • Rothschild was engaged as an independent capital markets adviser on the ABBs.
  • The government's decision to withhold the information is based on a perceived public interest in maintaining commercial confidentiality.

Statistics:

  • £10.5 billion: the amount of money lost by taxpayers during the 2008 financial crisis.
  • 7: the number of investment banks involved in the privatisation of NatWest.
  • 5: the number of investment banks that received fees for their roles in the privatisation.
  • 2015-2025: the period during which the privatisation of NatWest was completed.
  • 2021: the year in which Morgan Stanley took on an additional role as the broker trusted with ensuring a measured and orderly sales of shares through the trading plan.
  • 2016: the year in which Goldman Sachs was first involved in the privatisation as an adviser.
  • 2018: the year in which Goldman Sachs, Citigroup, Morgan Stanley, and JP Morgan were employed as bookrunners on the ABB.
  • £10.5 billion: the amount of taxpayer money involved in the bailout of NatWest during the 2008 financial crisis.

Sources:

  • "The Times"
  • UK Government Investments (UKGI)
  • Bobby Dean, Liberal Democrat MP on the Treasury committee