<strong>ASSET PROTECTION SCHEME</strong><br />RBS:<br />&bull; Will receive a &pound;25.5bn capital injection from government: &pound;13bn upfront; &pound;6bn of discretionary capital; and &pound;6.5bn in a fee taken as capital.<br />&bull; Toxic assets placed in the APS cut from &pound;325bn to &pound;282bn.<br />&bull; RBS must cover first &pound;60bn &ndash; not the &pound;42bn that was first envisaged?&ndash;&nbsp; of losses on toxic assets in return <br />for not giving up tax losses and allowances.<br />&bull; Government to put aside &pound;8bn in emergency capital if RBS&rsquo; Tier one <br />capital falls below five per cent.<br />&bull; Upfront &pound;6.5bn fee to join APS scrapped in favour of &pound;70m a year <br />for three years, then &pound;500m a <br />year for the life of the scheme. <br />&bull; RBS to pay a minimum exit fee, the largest of either &pound;2.5bn or 10 per cent of the actual regulatory capital relief received from the scheme.<br />&bull; Global Banking and Markets can be ranked no higher than number five in the combined global all debt league tables over next three years.<br />&bull; Government&rsquo;s economic interest rises to 84 per cent but its voting rights remain at 70 per cent.<br /><br />LLOYDS:<br />&bull; Will not participate in the APS <br />and will instead pay a &pound;2.5bn break <br />fee. <br />&bull; Will raise &pound;21bn through a combination of a &pound;13.5bn rights issue and a &pound;7.5bn debt for capital swap.<br />&bull; Government shareholding remains <br />at 43 per cent.<br /><br /><strong>ADVISORS</strong><br />&bull; Credit Suisse and Deutsche Bank advised the Treasury.<br />&nbsp;<br /><strong>DIVESTMENTS</strong><br />RBS:<br />&bull; Must sell Direct Line, Churchill and Green Flag insurance businesses within four years.<br />&bull; RBS-branded branches in England and Wales and NatWest branches in Scotland will be sold.<br />&bull; Must also divest of&nbsp; credit card arm Global Merchant Services and its stake in commodities trader RBS Sempra.<br /><br />LLOYDS:<br />&bull; Must sell Lloyds branches in Scotland as well as Cheltenham &amp; Gloucester branches and the Intelligent Finance online business.<br /><br /><strong>POSSIBLE BUYERS</strong><br />&bull; Those who have stated interest in assets on the block include Sir Richard Branson&rsquo;s Virgin Money and National Australia Bank, owner of Yorkshire and Clydesdale banks, which said it is &ldquo;watching events&rdquo;.<br />&bull; Groups thought to be interested include Spain&rsquo;s BBVA and Santander,&nbsp; French banks BNP and Soci&eacute;t&eacute; G&eacute;n&eacute;rale. Tesco has stated its intention to begin retail banking operations but so far has said it would achieve that aim organically.<br />&bull; Private equity firms who eyed Northern Rock and may be interested include JC Flowers and Texas Pacific. <br /><br /><strong>BONUSES</strong><br />&bull; RBS and Lloyds will not pay discretionary cash bonuses to any staff earning over &pound;39,000 this year.<br />&bull; Executive board members of both banks will defer any bonus payments due this year until 2012.<br />&bull; RBS boss Stephen Hester said: &ldquo;We will be making extensive use of deferred payments and payments in shares&rdquo;.