LONDON (Reuters) - Royal Bank of Scotland
The market regulator made the objections as discussions between the UK and European Commission on the RBS restructuring plan continue, RBS said in a statement.
The EC has stated that bailed-out banks should not use government aid to make payments to shareholders or holders of subordinated debt, it also said.
The government has a 70 percent stake in RBS after it helped support the crisis-stricken bank.
Brussels has been seeking to spread the pain of bank bailouts to shareholders and holders of higher-risk subordinated bank debt.
The decision covers two National Westminster Bank Upper Tier 2 notes totalling 500 million euros (436.6 million pounds), both with call dates on October 5, as well as two Royal Bank of Scotland Lower Tier 2 bonds totalling 1 billion Australian dollars (514.7 million pounds) both with call dates on October 28.
"Further decisions on whether or not to call capital instruments will be subject to consultation with the same parties," the bank said.
The Commission ruled last year that Germany's BayernLB
The EC also told Anglo Irish Bank
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Last updated: 04 September 2009, 07:49
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