BOE Stress Tests Prove Too Much for RBS

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Nov.30 -- Royal Bank of Scotland Group Plc was forced to bolster its capital plan after failing multiple hurdles in the Bank of England’s toughest-ever stress test, undermining Chief Executive Officer Ross McEwan’s progress at the majority taxpayer-owned lender. Some “capital inadequacies” were revealed at two other banks, Barclays Plc and Standard Chartered Plc, though neither was required to submit a revised capital plan, the BOE’s Prudential Regulation Authority said on Wednesday. RBS said it would make deeper cost cuts and sell additional unwanted assets in a plan accepted by the PRA, according to a separate statement. Bloomberg's Stephen Morris reports, JPMorgan Asset Management Strategist Nandini Ramakrishnan and Atlantic Equities Analyst Christopher Wheeler discuss with Francine Lacqua on "Bloomberg Surveillance."