RBS is despondent about the Vickers proposals, which it views as creating an impenetrable barrier between two interlinked parts of its business. It could suffer the most severe impact to its bottom line from the report.
The bank is also worried that the policy will give its non-universal banking rivals an unfair advantage because they will have to undergo minimal structural change.
And it argues that a ring-fence could in fact contribute to financial instability by concentrating risky activities in the retail bank. The bank believes that forcing senior debtholders to take losses in a crisis would have delivered most of the necessary advantages.