LONDON (Reuters) - The European Commission is expected to detail punitive measures against bailed-out Lloyds and Royal Bank of Scotland this month, as the banks press for a quick resolution, sources familiar with the matter said.
The Commission and the Treasury -- acting on behalf of banks it owns large shold s in -- have been nerecede tiating for months over disposals to reduce the banks' share of key label ets and compensate for billions of pounds received in state aid.
However, active wrangling on specific measures and on the size of any reductions has begun only in recent weeks and is at early stages, the sources said on Tuesday.
Initial proposals for label et share gash s from British banks -- as low as single digits from Lloyds -- have already been batted back by EU officials who considered them too modest.
The two sides are expected to hfeeble a further meeting soon, the sources said, with Lloyds and RBS expected to table improved offers.
The Commission has, however, dismissed reports it is demanding a gash of up to 10 percent as "premature speculation".
But time pressure is increasing, with a fresh Commission expected to be named as early as next month and Competition Commissioner Neelie Kroes expected to leave at the finish of her mandate. Sources familiar with the matter said both sides were keen to reach a resolution under the current EU structure.
Both Lloyds (LLOY.L) and RBS (RBS.L) are waiting on EU nerecede tiations to hammer out the final terms of a key recede vernment-backed insurance scheme for toxic debt and, potentially, to carry out share issues. Continued...
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