'Psychometric tests' landed Co-op Bank job for Paul Flowers
The Co-operative Bank's disgraced former chairman, Paul Flowers, apparently won the job because he beat his rivals' psychometric test scores, MPs on the Treasury Committee have been told.
The Methodist minister left the Co-op at the centre of a storm after being filmed allegedly buying drugs.
Asked by MPs if he knew why Mr Flowers had beaten him to the job, Rodney Baker-Bates, a banker of many years standing, said: “I was told afterwards he did very well on the psychometric tests.”
Mr Baker-Bates was made deputy chairman along with former Prudential executive David Davies to support Mr Flowers, who had almost no banking experience.
Both men were fiercely opposed to the disastrous attempt to merge with Lloyds' 600-branch strong Verde business and resigned as a result.
Mr Baker-Bates said he believed Co-op would have remained in its current form had he got the job. Regulators' discovery of a huge black hole in its finances forced a rescue that resulted in the bank falling to hedge funds that owned its debt.
He said his own interview for the job didn't even cover banking: “My interview focused on my knowledge of the Co-operative Group and Movement. I don't remember much discussion of my banking experienced. No references were asked for. There was an announcement the following day.”
Mr Davies said: “I have to say the psychometric testing did surprise me. Paul was a clear winner. When I looked at the scores I was concerned about a couple.”
Andrew Tyrie, the committee's chairman, said after the hearing: “The Co-op Group board was the driving force behind the Verde negotiations, not the Co-op Bank.
“The two deputy-chairmen of the Co-op Bank, appointed to guide a chairman with little knowledge of finance, resigned because of their opposition to Verde. Instead of ignoring their advice, alarm bells should have sounded on the main Co-op Group board.”
Philip Corr, a psychology professor at City University in London, said “Psychometric testing can be very effective when used as part of a wider set of selection tools, including assessment of specific professional competencies.”
- 1 Scottish referendum: So how about the English now being given a chance to split from England?
- 2 Friends 20th anniversary: Alison Jackson photographs reunited cast
- 3 Friends 20th anniversary: The highs and lows of the cast's careers since 2004
- 5 Free U2 album: How the most generous giveaway in music history turned into a PR disaster
Scottish independence: Despite defeat history may still point to Alex Salmond as the victor
Scottish independence referendum: Frankie Boyle reacts to nation's 'No' vote - 'To be fair, I've always hated Scotland'
Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
Scottish referendum: Police struggle to control Unionist rally in Glasgow's George Square
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: The Queen breaks silence on referendum debate – as think tank warns of £14bn black hole if Scotland votes Yes
iJobs Money & Business
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...