American International Group Inc (AIG) Bounced Back. Will Royal Bank of Scotland Group plc (ADR) (RBS) Follow?

Still, some are speculating that ahead of 2015 elections, the current government may find it beneficial to begin selling RBS. The bailout of the banks in the U.K. is unpopular as it is in the U.S. While considering whether to sell RBS shares, other options are on the table to including a break-up of some of RBS’ operations and a plan to give shares away to U.K. citizens so they can benefit from an eventual recovery. At this point RBS’ future is as much political as it is financial and this represents an added risk to a position in RBS.

AIG bounced back. Will RBS follow?

Shares of American International Group Inc (NYSE:AIG) are much higher than they were at their lows. During the worst of the crisis they fell into the single digits (split adjusted) and have spent much of their time in the $20 and low $30 ranges. But shares have risen higher on positive news and closed out the week at $44.53 per share. RBS shares remain below the break-even point for the U.K. government and with disappointing results they are now under 300p. Depending on how well Royal Bank of Scotland Group plc (ADR) (NYSE:RBS) is able to restructure itself and how the broader economy improves will determine both the future value of shares, and whether the government will continue holding them.

The article From 80 Percent To Zero: Is RBS The Next AIG? originally appeared on Fool.com and is written by Alexander MacLennan.

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