Reuters news reports that ratings agency Standard & Poors has downgraded 15 European banks, saying that European lawmakers have agreed on a framework that prevents governments from having to bail out troubled banks.

  • New laws now make it easier (and at less cost to taxpayers) to wind down problem banks
  • S&P said extraordinary government support for these banks would likely diminish as regulators implement the reforms, downgrading them to ‘negative’ from ‘stable
  • The list of banks downgraded includes the systemically important Barclays, Credit Suisse, Deutsche Bank, ABN AMRO, Bank Of Ireland and ING Bank