EDINBURGH, Scotland (AP) — Royal Bank of Scotland PLC chief executive Stephen Hester lashed out at "political interference" in the partly nationalised bank as shareholders met to approve its participation in a government asset protection programme on Tuesday.

Still, bank shareholders gave formal approval to the bank's participation in a programme that will let it off-load shaky assets, part of the British government's massive efforts to shore up the country's banks after huge losses from the world financial crisis.

RBS has been subjected to a British government-imposed cap on bonuses and a forced sell-off of assets by European regulators since it accepted a multi-billion taxpayer-funded bailout at the height of the financial crisis last October.

Hester, who has complained that the curbs on bonuses will restrict RBS's ability to find and retain workers needed to return it to profitability, said yesterday that more than £15 billion ($24 billion) has been wiped off the value of the government's 70 percent stake because of a related drop in RBS' share price.

"The potential for conflict of having the government as a major shareholder is clear and sharp," he said. "Political interference has damaged our share price over the last few months."

Hester added that key staff had been lost because of the restrictions, which would impact on profit at the bank this year.

"Some pockets of our business such as private banking have lost staff. This has damaged our share price and damaged our shareholders, it is damaging, but containable," he said. "This is why we would love to be out of the political limelight as soon as possible."

However, chairman Philip Hampton attempted to play down disagreements with the government, denying reports earlier this month that the board had threatened to resign over the bonus issue.

Britain's Treasury has demanded the right to veto bonuses as part of RBS' participation in the its asset protection programme to insure bad debts.

"We act like a cabinet, but there were some people who felt more strongly than others, but there were no threats of a mass resignation," Hampton said, while adding that the board intended to formally challenge the government's position.

"We suggest the board keeps control of bonuses," Hampton said. "We will go through the extra loop of seeking permission from the Treasury."