Co-op fears it will fail Bank of England stress tests

The troubled Co-operative Bank is this week likely to fail key ‘stress tests’ designed to probe the ability of Britain’s biggest lenders to withstand another financial storm.
Chief executive Niall Booker has already said it would come as ‘no surprise’ if the loss-making operation were to flunk Threadneedle Street’s tests.
Results of the tests, which model extremely bleak scenarios including a house price fall of 35 per cent and rocketing unemployment, are due tomorrow.
Co-op Bank, which is now largely owned by […]

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By |December 15th, 2014|BoE, co-op|0 Comments

Lloyds and Barclays top bank complaints

New figures show two banks attracted over 56,000 new complaints in first half of this year.
Lloyds Banking Group is the banking group the Financial Ombudsman Service received most complaints about, according to its latest figures, while Barclays generated the highest percentage of complaints per customer.
Between January and June this year, over 30,000 people complained to the Ombudsman about the Lloyds group, which includes Lloyds Bank and Bank of Scotland. And nearly 27,000 people complained about Barclays.
The Ombudsman is where […]

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Banking sector slow to increase competition after new rules

A relaxation in the rules governing the creation of new banks is yet to lead to a dramatic increase in the number of new high street players being authorised by the City regulator.
Figures published by the Bank of England show little change in the annual approval rate for new banks since the introduction of rules last year, which mean that new banks need less capital to get started than they did in the past.
Five banks were authorised in the […]

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Gates remain open for scandals

THE UK faces the risk of further banking scandals, unless action is taken to increase competition in the lending market for small and medium-sized businesses, according to a Government adviser.
Lawrence Tomlinson, the Yorkshire entrepreneur and Government adviser who compiled a dossier of complaints against RBS’s turnaround division, made the comments in response to reports that the Government is going to urge the big banks to increase the supply of SME (small-and-medium-sized business) loans.
The report in the Sunday Telegraph said […]

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    Lord Myners calls for radical overhaul of Co-operative Group

Lord Myners calls for radical overhaul of Co-operative Group

The Co-operative Group needs a radical boardroom overhaul if it is to survive the traumatic shocks of the past year, the City veteran charged with reforming the troubled chain of supermarkets, funeral homes and pharmacies has warned.
Lord Myners, Labour’s City minister during the banking crisis, described a “dysfunctional” board in which some directors did not know the difference between debits and credits and “clearly out of their depth when financial concepts and terminology are used”.
He said he realised within 30 minutes […]

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Co-op Bank Confirms losses of £1.3bn

The Co-op Bank has confirmed it made a loss of £1.3bn last year and will remain loss-making for the next two years as the troubled lender published its twice delayed annual results.

The lender said it had begun talks on a £400m fund raising and warned that without the new money it would be in breach of its minimum capital requirement.

Niall Booker, chief executive of the Co-op Bank, apologised for the situation and said the lender would be clawing back […]

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    Co-op Bank chief Niall Booker to get £4.6m in first 18 months

Co-op Bank chief Niall Booker to get £4.6m in first 18 months

Niall Booker is in line to receive at least £4.6m for his first 18 months as chief executive of the Co-operative Bank – almost equal to the amount the stricken lender has decided to withhold from former executives.

Full Story in the FT - By Andy Sharman and Sharlene Goff

http://www.ft.com/cms/s/0/dd294a2c-c140-11e3-97b2-00144feabdc0.html#axzz2yZSVV500

 

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By |April 11th, 2014|All Banks, co-op|0 Comments

Co-op Group to continue overhaul despite Lord Myners’ resignation

The embattled board of the Co-operative Group is pressing ahead with the dramatic overhaul of the loss-making business proposed by Lord Myners even though the former City minister has resigned from his post as senior independent director.
The Group confirmed Myners’ departure in just a month’s time after a dramatic two day board meeting. The chain of supermarkets, pharmacies and funeral homes said Myners’ is to leave at the annual general meeting on 17 May.
His shock resignation on Wednesday night after just four […]

By |April 10th, 2014|co-op|0 Comments

Co-op Bank delays issuing results again

The Co-operative Bank was thrown into fresh turmoil today as it delayed the publication of its 2013 financial performance for a second time.
The figures have already been postponed from 26 March after the bank stunned the City by admitting last month that it needed another £400m on top of a £1.5bn cash injection at the end of last year.
When it first delayed the results, the bank’s new boss, Niall Booker, said he aimed to publish the numbers “on or before” 8 […]

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By |April 7th, 2014|co-op|0 Comments

Ex-Co-op Bank chairman Paul Flowers aced psychometric tests – deputy

Rodney Baker-Bates explains appointment of Paul Flowers to Treasury select committee, and why he quit over Verde project

The Guardian, Gill Traynor, Tuesday 28 January 2014 18.00 GMT

The collapse of the Verde deal smashed hopes that an enlarged Co-op Bank would be a major player on the high street. Photograph: John Stillwell/PA

Paul Flowers, the disgraced former chairman of the Co-operative Bank, was appointed to the post because he did better than rival candidates in psychometric tests, the Treasury select committee of […]

By |February 2nd, 2014|All Banks, co-op|0 Comments