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Friday, April 11, 2014

Co-op Loses £1.3BN

The Co-op Bank made a loss of £1.3BN last year (in line with expectations), and will remain loss making for the next two years.

The Co-op has begun talks on raising £400M to ensure that it doesn't breach its minimum capital requirement.

Niall Booker, chief executive of the Co-op Bank, apologised for the situation and said it would be clawing back about £5M in bonuses from former directors and executives due to the failings.

He is quoted by the Telegraph:
We appreciate that customers and other stakeholders continue to feel angry about how past failings placed the future of the business so seriously at risk. I would like to apologise to them, to thank them for their continued loyalty and to thank colleagues for their commitment during such difficult times."
The bank will withhold most of its £5M executive bonuses.

Yesterday Lord Myners, one of its directors who is currently conducting a review of the Co-op's governance, resigned. He will remain a director until the Co-op's annual meeting on 17 May, when he had been due for re-election. He is still expected to complete his review.

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