The excellent management of a bank

Regulators at the Bank of England are growing increasingly concerned about the future of Co-operative Bank as the beleaguered lender struggles to find a rescue buyer.

It is understood the Prudential Regulation Authority (PRA) has begun drawing up contingency plans for the troubled bank, which put itself up for sale last month amid mounting concerns about its capital position.

If Co-op Bank is not bought, it will be forced to attempt a costly restructuring that would result in bondholders owning the lender in return for its debts being wiped out. If a rescue is not forthcoming, the PRA would step in and force the bank into resolution, which would result in it being wound up.

But as Spud told us, it would be very wrong of the authorities to insist that the bank was run by people who actually knew anything about banking, wouldn’t it?

19 comments on “The excellent management of a bank

  1. No half way sensible bank will touch it until its debts are written down, no matter how good its loan book. We’re also no longer in a world where the PM can collar the chairman of a sound bank over cocktails and cook up a purchase without due diligence, as Golden Broon did with the Lloyds TSB purchase.

    Some kind of process ending up in a debt for equity swap seems inevitable.

  2. Flatcap,

    Have the banks stopped laundering axis of evil money as that was the fulcrum in Lloyds case ?

  3. “We’re also no longer in a world where the PM can collar the chairman of a sound bank over cocktails…”

    But isn’t Brexit bringing that back? Can’t the PM now get said chairman a meeting with the queen and promise him a knighthood? Nah, they’ve been giving those away, so this chairman probably already has one. Perhaps a barony or some such?

  4. A pity they didn’t make Murphy a director just before it went tits-up. He was clearly brown-nosing to be one.

  5. I’m so glad I work in an industry that everyone needs but self-important gobshites don’t give two fucks about about so we can all just get on with it.

  6. Diogenes, examples of what? Brexit hasn’t happened yet.

    Awarding titles for favors to the crown is a time-honored tradition. In fact that is what these titles were created for in the first place, no?

  7. @synp

    Can’t the PM now get said chairman a meeting with the queen and promise him a knighthood? Nah, they’ve been giving those away, so this chairman probably already has one. Perhaps a barony or some such?

    I took that to mean that you had examples of this sort of thing. Which knighthoods did you have in mind?

  8. @Flatcap

    There is a court case pending where the shareholders of Lloyds TSB are suing the directors for wrong declarations etc regarding the HBoS takeover, and crashing the share value etc. I assume Brown’s involvement will come out in court (hopefully)

  9. It’s long been obvious that the major banks act neither in the interests of their shareholders not their depositors’. Their sole raison d’etre it to perpetuate the fraudulent edifice they’ve constructed in close partnership with the State.

  10. It’s so long been ‘obvious’ that it’s a major section of The International Jew.

    If you want to start getting people to believe the Jews are running the world and stealing all their money, the first step is to get them to believe someone is. And the propaganda goes almost word-for-word as regurgitated by BIS above.

  11. (Jeez, 21 minutes? That is honestly just coincidence, first time I looked at this site today. I’m not hanging out here waiting for the merest hint of a mention of my pet topic…)

  12. WTF’s anything to do with Jews, Dave? Because some bankers are Jews? The one’s I dealt with most run a timber yard at Tottenham Hale. That make the whole timber industry a Zionist conspiracy? I’ll have to ask them next time I order some 4 x 2.

  13. You’re repeating Nazi conspiracy theories about where money comes from and goes, apparently without realising that’s what they are.

    MMT isn’t new, it was a core part of the Nazis’ propaganda justification for wiping out ‘the Jews’. (And it wasn’t new then, either.)

    It’s laughable to call it ‘modern’ monetary theory. Magic Money Tree is about right, and the whole point of that very old libel is that ‘the Jews’ are stealing the fruit of that tree that we should all share.

    Obviously, you don’t believe any such nonsense about anyone. But the people who want you to start believing it, so they can get the gas ovens fired back up, understand that the first step in selling you the idea is getting you to believe that _someone_ is doing it. Sadly they’ve succeeded in that.

  14. P.S.

    Ritchie and his mouth-breathers would agree with every word you wrote. That’s how wrong you are.

  15. Richie is piling in on this subject in the same way as Owen Jones is on the current situation in Venezuela.

    In other words, silence. Perhaps it’s the embarrassed, slightly guilty silence you get when something you had influence over, no matter how slight, goes horribly, horribly wrong.

Leave a Reply

Name and email are required. Your email address will not be published.