Fund companies often charge individuals at least a quarter of a percentage point more than they charge institutions, Mr. Spitzer said in Congressional testimony last year.
Davies said the letter to business customers was a "bureaucratic exercise" that was misunderstood and that charging financial institutions put RBS in line with some other banks.
They or something like them should be the basis for charging financial institutions for the risks they pose to the stability of the system.
They also asked Holder to name outside experts that prosecutors consulted in making decisions about charging financial institutions with more than $1 billion in assets.
At the same time, the opacity of the privatisation process stops fair competition between fee-charging institutions.
The consumer product is free for users, but the startup charges institutions a fee for its GeoAlert product.
"The assumption we propose to make about the level of postgraduate fees is significantly below the average level actually charged by institutions and does not lead to a reduction in grant for any institution," said a Hefce spokesman.
Prices charged by institutions vary by up to 150%.
The discount rate is the rate charged depository institutions when they borrow short-term adjustment credit from their district Federal Reserve Banks.
