Royal Bank of Scotland Group PLC (RBS, RBS.LN) Chairman Sir Philip Hampton said the U.K.'s Financial Services Authority is unhappy with the bank's 8 billion pound government-backed contingent convertible instrument, the Financial Times reported Friday. Hampton told the FT that a replacement for the instrument is likely to be government-backed, citing the "pretty lousy" market for issuing capital. Another topic of the bank's restructuring talks with the FSA and the government is the government-underwritten Asset Protection Scheme, according to the FT. Hampton said the APS is eroding the bank's capital strength, the FT reported. Full story at http://www.ft.com/intl/cms/s/0/88902b70-b175-11e1-9800-00144feabdc0.html#axzz1xEk01Mn6 Write to nymonitoring@dowjones.com
