This is a bit funny:

The pound fell against the dollar after Standard & Poor’s said U.K. banks are no longer among the world’s “most stable and low-risk” as the economy stagnates.

How is it funny? Apparently S&P issued the report over a month ago, and nobody cared at the time:

S&P had already lowered the U.K.’s place in its Banking Industry Country Risk Assessment gauge to Group 3 from Group 2 on Dec. 21.

So, when the news was… new, nothing happened, but having it reprinted in a different release causes market swings? I guess it really is all in the timing.

Disregarding the odd timing, this is significant. If the UK is not perceived as a safe haven, the flight to safety play changes dynamics. Also consider: there’s still a significant risk that even with an immaculate recovery, the US will face similar problems. It just might take us longer to get there.