RBS Negative, Gives Up Libor Fight


Royal Bank of Scotland (RBS), the recipient of the world’s biggest banking bailout, had its credit outlook changed to negative from stable by Standard & Poor’s amid 'new failings' across the U.K. financial system.

Bloomberg reports that two smaller lenders (Virgin Money and Yorkshire Building Society) also had outlooks downgraded along with London-based RBS, according to a statement from S&P Friday.

The change reflects 'our belief that industry risks for U.K. banks have grown relative to other banking systems', S&P said.

In the meantime, Reuters reports that RBS has agreed to hand over documents demanded by Canada in its probe into whether the bank was involved in a global interest rate-rigging scandal, Canada's Competition Bureau said on Friday.

The move marked a reversal for RBS, which had launched a legal challenge against the bureau's demand for internal documents. The Competition Bureau is trying to determine whether RBS and several other banks sought to manipulate the London Interbank Offered Rate (Libor).

RBS Outlook Changed to Negative by S&P Amid ‘New Failings’

RBS gives up fight, will hand over Libor documents to Canada

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