MW A decade and a half after the global financial crisis, two governments are still reducing their bank stakes

By Steve Goldstein

The British and Irish governments separately announced on Tuesday they were trimming stakes in banks they've owned since the 2008-09 global financial crisis.

Ireland said it's reducing its stake in AIB Group (IE:A5G) to 12.5% from 17.5%, while Britain reduced its stake in NatWest (UK:NWG) to about 8% from 9%.

Banks across the globe were partly nationalized in the wake of the 2008-09 global financial crisis, as well as the ensuing eurozone debt turmoil.

The biggest U.S. banks that have received rescues, including Bank of America, Citigroup and JPMorgan Chase, have long ago exited nationalization.

The fates of government-backed mortgage giants Fannie Mae (FNMA) and Freddie Mac (FMCC) are still to be determined, with new Treasury Secretary Scott Bessent saying no conservatorship should be indefinite but also not providing any privatization plan during his confirmation hearing.

Germany ran into trouble this year when reducing its stake in Commerzbank (XE:CBK), as Italy's UniCredit swooped in to buy a stake in the German lender that it has now taken to 28% via derivatives.

-Steve Goldstein

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January 28, 2025 07:33 ET (12:33 GMT)

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