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Royal Mail privatisation: Government yet again rewards multinationals for failure

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The government has announced that Goldman Sachs, which has ‘sparked a great deal of controversy over its alleged improper practices’ – especially since the 2007 and ongoing financial crisis – and UBS, fined £940m for its role in the Libor rate rigging scandal – are to be the global co-ordinators and bookrunners of the Royal Mail privatisation.

The department for business, innovation and skills (BIS), which is in charge of the sale, refused to say how much the banks will collect in fees, but they will collect 1% of the flotation value.

A BIS spokesman declined to comment on the banks’ roles in recent scandals.