Taxpayers stand to gain £7.4bn from rescued banks

UK taxpayers were sitting on an estimated paper profit of £7.4bn in the bailed-out banks last night, after Northern Rock's "bad bank" swung into the black for the first time since the financial crisis. Calculations by the Guardian suggest the banking sector is finally appearing to be generate a profit - at least on paper - for the taxpayer after a slew of positive results. Today, Lloyds announced it is back in the black posting a £1.6bn pre tax profit in the first half of the year. RBS is expected to follow suite on Friday. The stakes in Lloyds and Royal Bank of Scotland were ...