Co-op opens review into £1.5bn bank rescue
The Co-op has launched an independent review into the events leading up to its beleaguered banking business's emergency £1.5bn cash call.
The review will be chaired by the former senior civil servant Sir Christopher Kelly, who has been chairman of both the Committee on Standards in Public Life and the Financial Ombudsman Service. It comes amid mounting controversy over the decisions made by the bank and regulators at the Bank of England.
Some 15,000 retail bondholders will lose as much as 60 per cent of their savings as the Co-op plans to convert their holdings to equity in the bank, which will be listed on the London Stock Exchange, to raise £500m. The Co-op group will inject a further £1bn, half of which will come from the sale of its insurance businesses.
It also emerged yesterday that the directors had considered making the bank the first in Britain subject to a "living will" – a "recovery and resolution plan" – set up in the wake of the financial crisis. Had the Co-op proceeded with the plan, its bank would have closed after more than 140 years.
An action group made up of retail bondholders has criticised the regulators' decisions, arguing that the Co-op was adequately capitalised and was forced to move too quickly. Sources close to the Co-op bank argued that they had no other option and, if the bank executed its living will, bondholders could end up with nothing.
The review is set to report to next year's annual meeting in May.
Oscar Pistorius trial: Paralympian sick again after photographs of Reeva Steenkamp's body are shown in court
Missing Malaysia Airlines Flight MH370: US pushes search towards vast expanse of the Indian Ocean
Tony Benn dead: Veteran Labour politician passes away at 88
Arrest made after man is found by the side of the road with his penis cut off
Missing Malaysia Airlines Flight MH370: Focus shifts west as Indian Ocean becomes latest search area for the aircraft and its passengers
Katie Hopkins continues campaign to become Britain's most hated talking head with poorly timed Bob Crow tweet
No EU referendum under Labour: Ed Miliband to reveal that vote on membership is ‘unlikely’ in next Parliament if party wins power
Grace Dent: Who cares if she spells it Barraco Barner? Gemma Worrall is more employable than some bookish arts graduate
Europeans have ‘got whiter’ due to natural selection in past 5,000 years, scientists say
Fracking is turning the US into a bigger oil producer than Saudi Arabia
How climate change helped Genghis Khan: Scientists believe a sudden period of warmer weather allowed the Mongols to invade with such success
- 1 Tony Benn meets Ali G: Watch Labour veteran burn Sacha Baron Cohen
- 2 Women do experience two different types of orgasm, study reveals
- 3 Tony Benn dead: Veteran Labour politician passes away at 88
- 4 Malaysia flight MH370: Pitbull song lyrics bear uncanny resemblance to missing plane mystery, according to YouTubers
- 5 Gauthier Soho has ranted against 'food blaggers' - so can we really trust online reviews?
iJobs Money & Business
£35000 - £43000 per annum + Bonus and Benefits: Harrington Starr: A global lea...
£50000 - £60000 per annum: Harrington Starr: Linux Systems Administrator - UNI...
£32000 - £36000 per annum + generous benefits: Pro-Recruitment Group: * TAX * ...
£37000 - £40000 per annum + £20000 benefits package: Pro-Recruitment Group: **...