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Think tank 'disappointed' by slow privatisation of RBS

20 June 2013 Last updated at 09:27 BST

The chancellor George Osborne used his annual Mansion House speech to the City to announce the government is preparing to sell its stake in Lloyds Bank back to private investors.

On RBS, in which taxpayers have an 81% stake, Mr Osborne said he did not want "a quick sale of our RBS shares" - but he said he would look at whether to split the good bits from the bad.

James Barty from the think tank, Policy Exchange, said "RBS would be ready to be privatised next year so we are disappointed with what the chancellor said last night".

He said "in state hands there was the risk of influence by politicians" and it was "corrosive for the bank".

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