Co-op bank expected to avoid large fine

FCA and Prudential Regulation Authority reportedly avoiding levy for fear of worsening bank's already precarious capital position

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The Independent Online

The Co-operative Bank is expected to escape a hefty fine after a long-running investigation into its near collapse two years ago.

The Financial Conduct Authority (FCA) and Prudential Regulation Authority are expected to avoid imposing a punishing levy on the bank for fear of worsening its already precarious capital position, Sky News reported last night.

The regulators are due to formally announce the findings from an 18-month inquiry into the bank’s conduct today. The FCA refused to comment on the speculation.

The Government has promised an independent inquiry into the bank, whose near collapse unleashed a row about the way it had been regulated.

There was also scrutiny of those at the top of the bank at the time of the debacle, particularly of former chairman Paul Flowers.

Mr Flowers, a Methodist minister, was unable to tell the Treasury Select Committee the size of the bank’s balance sheet and later admitted possession of cocaine, crystal meth and ketamine at Leeds magistrates’ court after a newspaper exposé.