On Monday, Barclays announced that it has “determined that it would not be in the interests of its investors, depositors and clients to participate in the [U.K. Government's Asset Purchase Scheme].” The Asset Protection Scheme provides protection to participating institutions against credit losses incurred on one or more portfolios of defined assets to the extent that credit losses exceed a “first loss” amount to be borne by the institution. Last week, Barclays confirmed that “its capital position and resources were expected to meet the capital requirements of the UK Financial Services Authority after application of a detailed stress test to determine resilience to stressed credit risk, market risk and economic conditions.” Both RBS and Lloyds have agreed to participate in the Asset Protection Scheme.