A Royal Bank of Canada (RBC) logo is seen at a branch in Toronto.© Mark Blinch / Reuters/Reuters
Here's some good news for Royal Bank of Canada , in what has been a pretty dismal week so far: Standard & Poor's maintained its credit ratings on the bank, following allegations earlier this week from a U.S. regulator that it had conducted illegal "wash trades."
From S&P: "Standard & Poor's Ratings Services today said its ratings on Royal Bank of Canada (RBC; AA-/Stable/A-1+) remain unchanged following recent allegations by the U.S. Commodities Futures and Trade Commission (CFTC) related to RBC's trading activities. RBC has indicated that the amount at stake in the CFTC complaint is not financially material. However, we will continue to monitor any developments associated with these allegations, including responses or actions on the part of Canadian regulatory or tax authorities, and communicate to the marketplace any ratings implications should such development become of material consequence."
RBC shares fell 2.8 per cent on Tuesday – though the decline was likely also driven by a general market downturn and RBC's announcement that it would pay $1.1-billion to buy full ownership of Dexia. On Wednesday, the shares were down 0.4 per cent in late morning trading, in line with other banks.
David Berman