Co-op Bank needs £400m

25 March 2014

co-op bank The Co-op, good with food perhaps. Maybe not so hot on banking.

The beleaguered bank is hoping to raise money by issuing a new round of shares, after discovering that their finances are in a bit of a state, according to the BBC.

The Co-op blames this on misconduct and poor documentation, as well as PPI mis-selling and mortgage palavers.

The bank said the discovery meant it would make a loss of £1.2bn to £1.3bn for 2013, when it releases its full accounts next month.

"The starting capital position of the bank for the four to five year recovery period is weaker than in the plan announced last year," said a possibly deeply embarrassed chief executive Niall Booker.

The bank had to be rescued last year, when it was left with a £1.5bn capital shortfall, and a lot of the bank's troubles began when they merged with Britannia building society in 2009. And then in November, it announced that a group of private investors, made up mostly of hedge funds, would inject nearly £1bn into the bank in exchange for a 70% ownership stake.

Then of course there was all that business with chairman Paul Flowers and the meth and rent boys. To hopefully help matters, the bank is cutting staff and selling parts of its business to try and survive. But can it?

TOPICS:   Banking   Investments   High Street News

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