Bondholders will be offered a minority shareholding in the Co-op Bank if they accept the terms of the rescue deal. But the Co-op warned yesterday that the newly-listed bank was unlikely to make a profit for several years.
Mr Taber said: “The Co-op has stated that the bank ‘will not be profitable for some years’, so presumably no prospect of a dividend on the ordinary shares they will be offering pensioners in exchange for their bonds for some years either. So how can their offer as announced to date be suitable for their pensioner investors?”
Yup, all those pensioners who held bonds in Britain’s most ethical bank, run as it was as a mutual, without any of that City trading and investment nonsense.
As Ritchie says:
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.
Ethics really are more important than competence in that Courageous State