Co-op to cede control of bank
Published 22/10/2013 | 09:27
Retail and hedge fund holders of Co-operative Bank's £1.3bn of bonds have forced it to change its recapitalisation plan, potentially wrestling control from the parent Co-op Group.
This is a major climbdown by the group's new chief executive Euan Sutherland and the bank's new chief executive Niall Booker.
Co-op Bank also revealed that it had found a further £100m to £10m of extra provisions needed to cover payment protection mis-selling, bad debts and breaches of the Consumer Credit Act.
It said this had been notified to the Prudential Regulatory Authority which had decided it did not need to increase the £1.5bn of extra capital Co-op Bank must find by the end of 2014.