Treasury inquiry announced into Co-op Bank turmoil as Paul Flowers bailed
It could produce uncomfortable findings for both last Labour government and current Coalition
An independent Treasury inquiry into the turmoil at the Co-operative Bank, including the appointment of Paul Flowers as its chairman, was announced tonight by Chancellor George Osborne.
As it will cover the last five years, it could produce some uncomfortable findings for both the last Labour government and the current Coalition administration.
The move followed the arrest of Mr Flowers, a 63-year-old Methodist minister, in connection with claims he bought and used class A drugs. He was being questioned by West Yorkshire police last night after being arrested in Liverpool and later bailed.
Amid mounting allegations about his private life, he has been suspended by the church and the Labour party, which he represented as a councillor until 2011 when "inappropriate but not illegal adult content" was found on his council computer.
Labour and the Tories have traded accusations over who was responsible for the bank coming to the brink of collapse because of a £1.5bn black hole in its finances.
The Treasury inquiry will range across how the bank ran up vast losses, its ill-fated merger with the Britannia Building Society in 2008, its failed attempt to acquire Lloyds branches seven months ago and how appointments were made to senior positions.
The probe will be led by an independent person appointed by the City regulators, the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).
It will add to an investigation planned by the PRA and the FCA into whether there were adequate systems and controls in place to prevent the crisis at the bank.
It will also consider whether there was any wrongdoing by individuals, which could lead to fines and censures.
David Cameron has denounced the links between the bank, Mr Flowers and the Labour party. Tories have also pointed to connections between the Co-op and Ed Balls, the shadow Chancellor.
Ed Miliband, the Labour leader, retorted yesterday, accusing the Prime Minister of "cheap political points" and "unjustified smears".
Labour also seized upon a comment by the former Tory minister David Davis that Mr Osborne and the Treasury had "serious questions to answer" about the oversight of the bank in connection with its attempted acquisition of Lloyds branches.
Kirstie Allsopp has waded into the female fertility debate again
Gillian Anderson lays into gender disparity in Hollywood
- 1 Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
- 2 Prince held a Facebook Q&A and this is the only question he answered...
- 3 'F*ck it, I quit': KTVA reporter Charlo Greene quits live on air in spectacular fashion
- 4 35,000 walrus gather on north-west Alaska beach 'for a rest'
- 5 Brad Pitt, on the moment he completely lost his temper with Clint Eastwood's son
Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
Prince held a Facebook Q&A and this is the only question he answered...
Brad Pitt, on the moment he completely lost his temper with Clint Eastwood's son
Jennifer Lawrence nude photos leak: More celebrities allegedly targeted as third wave of hacked images released
Cheryl Cole named 'the most dangerous celebrity' on the internet
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
Former Tory donor Arron Banks ups his Ukip donation to £1million following William Hague 'nobody' comment
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Should gay sex be illegal? 16% of Britons think so
Mark Reckless becomes second Tory MP to defect to Ukip in a month
- < Previous
- Next >
£20000 - £25000 per annum + Uncapped Commission, 1st yr OTE £30-£40k : SThree:...
£45000 - £50000 Per Annum: Clearwater People Solutions Ltd: Our client is curr...
£400 - £450 Per Day: Clearwater People Solutions Ltd: My client are looking fo...
£40000 - £45000 Per Annum + benefits: Clearwater People Solutions Ltd: Domino ...