Belfast Telegraph

Co-op to cede control of bank

BY NICK GOODWAY

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.

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