'Royal Bank of Scotland's chairman has admitted it is "unlikely" the government will get back all the £45.5bn pumped in to the bank.
Sir Howard Davies said restructuring costs, losses on loans and selling businesses meant RBS was valued at less than taxpayers paid for their stake.
"The focus on survival over a decade has had a cost," Sir Howard said.
"The bank was rescued to save the UK financial system from collapse, not as a financial investment," he said.
He said in a lecture looking back on the decade since the financial crisis that the government is "unlikely to recoup its investment in full".
Explaining why, he said the bank had lost £130bn over the 10 years since it was rescued - about four-and-a-half times the bank's current stock market value - and incurred restructuring costs of £15bn.
The bank had been required to meet state aid requirements from the European Commission by selling off businesses which "materially reduced RBS's market value", Sir Howard said.
It was also required to sell a 5% share of small business lending by spinning off bank branches, but last year, the Commission accepted a plan to free the bank from its obligation to sell its Williams & Glyn division in return for alternative remedies.'
Read more: RBS bailout 'unlikely to be recouped'
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