Co-op Needs Another £400M

The much maligned and previously ill governed Co-op Bank has discovered that it needs a further £400M, after unearthing more costs related to past misconduct.

The Co-op raised £1.1BN last year. However, it has discovered further costs related to mis-selling PPI, mortgages and interest rate swaps as well as "technical breaches of the Consumer Credit Act".

Niall Booker, chief executive, is quoted by the Telegraph saying that the result is the Co-op Bank is starting on its road to recovery with a capital position that is "weaker than in the plan announced last year."

The impact on the 2013 figures is expected to be between £1.2BN and £1.3BN.

The sins of the past catch up with you in the present!