Anglo scandals prompt S&P to downgrade banking system

DAMAGE caused by scandals at Anglo Irish Bank has forced Standard & Poor’s (S&P) to downgrade Ireland’s banking system for the second time in three months.

It said Anglo has “weakened investor confidence” while the reputation of Irish banking with the public and the investor community has suffered in recent months.

The New York-based ratings agency believes the regulator has shown “some reluctance” to intervene, particularly in Anglo’s case.