Clegg: Give public shares in bailed out banks

Deputy Prime Minister Nick Clegg has backed proposals to give the public shares in part-nationalised banks RBS and Lloyds.

The plan would see individual taxpayers benefit from any long-term gains when shares in the banks are sold, reports the BBC.

Clegg said it was important British people were not overlooked after their money was used to keep the banking system alive.

The Treasury said all options would be considered. However, some experts have warned the scheme would be difficult to run.

"Psychologically it is immensely important that the British people feel they have not just been overlooked and ignored," said Clegg speaking on a trip to Brazil.

"Their money has been used to the tune of billions to keep the British banking system on a life-support machine and they have absolutely no say at all in what happens when normality is restored."

"I think, in a sense, as a society we are condemned to take an interest in our banking system."