Isn’t that a well run bank?

Stricken Co-operative Bank has warned that it may have to raise as much as £750m from investors if it fails in its attempt to find a buyer for the business.

The ethical lender, which was rescued by a group of US hedge funds in 2013, cautioned that it is considering forcing its existing investors to help fill its capital hole by bailing in bondholders and converting their bonds into shares.

On top of a debt-for-equity swap, which would be at the expense of the funds that saved the lender in 2013, Co-op Bank would also seek to raise a further £300m in new equity, to show the Bank of England it has sufficient capital.

That decision to run it with people with no knowledge of banking worked out well then, didn’t it Spud.

10 thoughts on “Isn’t that a well run bank?”

  1. The ethical lender? Taking people’s money & losing it’s a definition of ethical I haven’t encountered before. One lives & learns.

  2. Oh, come on Tim. Be fair. I bet the Co-Op bank would get a Fair Tax Mark. The Murphatollah would make sure of it. A special one. With gold foil and Murphy’s signature in crayon.

  3. So Much For Subtlety

    bloke in spain – “Taking people’s money & losing it’s a definition of ethical I haven’t encountered before. One lives & learns.”

    Losing it? Totally unethical. Taking it and blowing it on crystal meth and rent boys? That is another matter.

  4. Even the Telegraph refers to it as “the ethical bank” without irony or scare quotes.

    Do we really need another version of the Guardian?

  5. Is this a record?

    The Fat Comptroller can’t maintain a consistent thought for the length of a sentence:

    The ethical lender, […] is considering forcing its existing investors…

    Or is it that an ethical lender is excused from being an ethical borrower?

  6. Well I got £150 out of them to switch and ditch, if 20000 people did it then that’s £3 million they threw away, not including the costs of administering the 20000 accounts.

  7. Ethical? As an ex-employee, I can assure you they are ethical in the same way as Messrs Capone, Goebels and Himmler. I walked out years ago and wouldn’t trust them to sit the right way on a lavatory. The Co-op has a long and dubious history of acquisitions and mergers being good news for those involved at the top of the pyramid but proving disastrous a few months later. As a result I developed my own rules: If they have to TELL you they are ethical, they are not! Likewise being told you are “valued” – you are unwanted enough to be patronised.

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