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UK/EU: Early notice of RBS breakup skirts stricter EU state aid rules

 |  October 7, 2013

While the European Commission’s new rules for state aid to banks went into effect last August, reports say that the UK Treasury filed an early notification to EU regulations regarding the planned break-up of Royal Bank of Scotland, meaning the plans will be reviewed under the leaner, earlier EU rules.

Reports say the partially state-owned RBS could be restructured in the Treasury’s plans to require the bank to divest its riskiest loans into a separate body, allowing the rest of the bank more suitable to offer loans.

Reports say new EU rules would place caps on RBS executives’ paychecks and bar federal officials from buying out minority shareholders, meaning the government’s RBS restructuring plans could be more difficult.

Due to the early filing, which was submitted to the EU last July, regulators will likely review the restructuring plans under old EU law.

Full Content: Reuters

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