NEW YORK (TheStreet) -- Royal Bank of Scotland (RBS) - Get Reportstock is dropping 13.81% to $4.68 this afternoon on heavy trading volume after the British government, which holds 73% ownership, announced that it would abandon plans to sell its stake in the bank following the Brexit vote.
Over 20 million shares of RBS have traded hands today vs. its average volume of 2.56 million shares per day.
The government had previously planned to sell $11.9 billion of stock to fund managers and the public this year, but major market upheaval triggered by last week's Brexit vote has given reason to pause on the sale until at least 2017.
"It is going to take quite a while for us to understand the implications for the banks before we could even consider starting to sell," a source for the Treasury said as cited by Yahoo.
In the meantime, prolonging the sale leaves a massive hole in the government's finances.
Barclays also downgraded its rating of the stock this morning to "underweight" from "equal weight."