The mutual needs to raise as much as £1.8bn to repair its bank’s balance sheet and said on Friday that it was “undertaking an extensive review” of the business.
Swiss investment bank UBS has been hired to advise the Co-op on its options, which could range from the sale of more assets to the winding down or sale of the entire bank.
Euan Sutherland, the new chief executive of the Co-op, confirmed that Co-op Bank had stopped making loans to new customers as it looked for ways to raise new capital.
Note that the Co Op Bank is not simply illiquid, unable to meet current obligations because of a run. It is possibly insolvent: unable to cover the losses on loans already made.
And the Man Who Would Order Our Economy has said this about the bank in the past:
And heads need to roll. Whole rafts of senior bankers need to leave the industry: their mentality is corrupt and has to be swept away. There will be decent people who can take their places: have no doubt about it. But it will take leadership from a new type of non-exec director dedicated ti making banking work again that will let this happen. Again, I think such people exist; they’re just the outsiders now. The farce that the Coop was told recently that its board was not suitable to run a bank because it was not made up of bankers has to go: it’s precisely because people are not bankes that they may be suited to their new roles of making sure banks are clean, although competence will also be important too, of course.
Personally the idea that bankers ought to be competent and assessed as such doesn\’t bother me. Others appear to disagree.