Banking Shares Fall After RBS Mired in Business Scandal

Royal Bank of Scotland's shares fell after leaked report suggests the bank squeezed struggling businesses to boost its own profits

Emma Simon 10 October, 2016 | 11:57AM
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Banking shares fell in early trading on Monday, after leaked documents appeared to show that Royal Bank of Scotland (RBS) was mired in another scandal.

The documents – passed to Buzzfeed News and BBC Newsnight –show that the beleaguered bank profited from struggling businesses by buying up assets cheaply. This has renewed fears among investors that RBS could face substantial compensation claims and hefty regulatory fines if its actions caused otherwise viable businesses to fail.

On the FTSE100 this morning RBS shares were the worst performing stock, falling by 2.25% in early trading to 177.80p. However, fears of further banking scandals dragged down the performance of other leading UK banks. Shares in Lloyds Banking Group (LLOY) were down by 2.06%, to 51.42p, while Barclays (BARC) fell by 1.84% to 170.40p.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Barclays PLC186.66 GBP0.00Rating
Lloyds Banking Group PLC46.48 GBP0.00Rating
NatWest Group PLC216.80 GBP0.00Rating

About Author

Emma Simon

Emma Simon  is a financial journalist, specialising in investment and consumer issues, writing for Morningstar.co.uk